* CEO's lawyers in talks with prosecutor - Handelsblatt
* D. Boerse may face fine of up to 10 mln eur - Handelsblatt
* Prosecutor's office says investigation ongoing
(Updates with comment from public prosecutor and Deutsche
Boerse, details from report)
FRANKFURT, May 22 Deutsche Boerse
Chief Executive Carsten Kengeter's defence team is negotiating
with prosecutors to drop an insider trading investigation
against him, German daily Handelsblatt reported on Monday.
In return, the German stock exchange operator may face a
fine of up to 10 million euros ($11.2 million) for delaying the
announcement of its plans to merge with the London Stock
Exchange, the report said.
Such a deal could still take several weeks, said
Handelsblatt, which cited multiple unnamed sources.
A spokesman for Deutsche Boerse declined to comment.
A spokeswoman for the Frankfurt prosecutor's office said
that the office was handling the two cases together but that
"investigations on the suspicion of insider trading at Deutsche
Boerse are still pending".
Kengeter has previously denied the insider trading
allegations, saying he did not determine the timing of his share
purchases ahead of the announcement of merger plans with the
London Stock Exchange.
The plan to combine the stock exchanges, however, was later
struck down by European regulators, who said the deal - the
pair's fifth attempt to merge - would result in a monopoly in
the processing of bond trades.
Last week, Kengeter said he and Deutsche Boerse were fully
cooperating with the public prosecutor's office in the insider
"I am certain that, following detailed investigation, the
allegations will turn out to be unfounded," he said at the
company's annual general meeting.
($1 = 0.8955 euros)
(Reporting by Tom Sims; Additional reporting by Hans
Seidenstuecker and Alexander Huebner; Editing by Himani Sarkar
and Louise Heavens)