The London Stock Exchange’s merger with Deutsche Boerse is coming under fire in Germany, with politicians and industry veterans speaking out against the deal amid fears that Frankfurt’s status as a financial hub will be eroded.
As both exchanges canvass investors about their £21bn merger, the decision to move the combined group’s headquarters to London while giving the German bourse’s chief executive, Carsten Kengeter, the top job has been criticised.
Manfred Zaß, a former Deutsche Boerse director, has warned that the compromises contained within the “merger of equals” could damage Frankfurt’s standing, despite Mr Kengeter’s claims that the deal would safeguard the city while enabling both the UK and Germany to compete in global markets.
Mr Zass, who left the bourse after its failed bid to buy the LSE in 2005, told a German magazine: “We should not be naïve… With respect, if you know the push and pull behind such a merger, it sounds more like an investment banker fairy story.
“The supposed parity – the boss here, the domicile there – creates a recognisably lopsided Frankfurt,” he told a German magazine.
Full content: The Telegraph
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