Deutsche Boerse backs Kengeter amid share purchase investigation

Supervisory Board at the exchange finds no merger negotiations with LSE took place in 2015.

Deutsche Boerse has backed its chief executive officer, Carsten Kengeter, as German authorities continue to investigate a share purchase made before the announcement of the London Stock Exchange (LSE) merger deal.

The supervisory board of the exchange unanimously expressed its ”full confidence” in Kengeter following extensive conversations with experts and an analysis of the share purchase that took place in late 2015.

Deutsche Boerse said the “assessment resulted in the joint finding that no merger negotiations with the LSE had taken place in the year 2015.”

Kengeter allegedly purchased shares in Deutsche Boerse worth €4.5 million just two months before the exchange operator announced plans to merge with LSE.

Earlier this week, Deutsche Boerse confirmed the investigation but added Kengeter was encouraged by the board to acquire a stake in the exchange to show he was committed to the company.

The exchange also announced relevant bodies at Deutsche Boerse and LSE have decided to formally submit the sale of LCH Clearnet SA to ease anti-trust competition concerns ahead of the LSE merger.

Euronext made an all-cash offer of €510 million for the French-based clearing house in January this year, as the European Commission stated its objections over the mega-merger had “narrowed”.