(Corrects figure for share purchase price in second paragaph)
* CEO says allegations will prove unfounded
* Says timing of share purchase was determined by board
* Says insider trading goes against his "innermost
* Plans to create 300 jobs in Frankfurt
By Edward Taylor
FRANKFURT, Feb 16 Deutsche Boerse's
chief executive said insider trading allegations against him
would prove unfounded, pointing out that he did not determine
the timing of his share purchases ahead of the announcement of
merger plans with the London Stock Exchange.
Deutsche Boerse's supervisory board created a unique share
purchase plan tailored for CEO Carsten Kengeter which allowed
him to invest 4.5 million euros ($4.8 million) in Deutsche
Boerse shares at 75 euros apiece, while Boerse granted him a
further 4.5 million euros in shares, he told a news conference
German police and prosecutors this month searched Kengeter's
office and apartment as they investigate whether secret merger
talks with LSE were already under way at the time the package
"When I purchased the shares using my own funds, I did not
do so at a time of my own choosing," Kengeter said on Thursday.
"I did so between 1 and 21 December 2015 within a time-frame
fixed by the supervisory board," he said, adding that the shares
were subject to a holding period until the end of 2019.
He declined to say whether it was already clear in December
2015 that a merger with LSE would be attempted, saying he could
not comment on the ongoing investigation.
"Insider trading is against my innermost conviction," he
said, adding that he and Deutsche Boerse were fully cooperating
with the public prosecutor.
Separately, Kengeter said a failure to complete the merger
with LSE to create Europe's biggest stock market would weaken
Germany's main financial centre, Frankfurt.
"Any concerns that Frankfurt as a financial centre might be
disadvantaged by the proposed business combination fail to
recognise one thing: the biggest risk to Frankfurt... is doing
nothing," he said.
Deutsche Boerse and LSE are proposing to locate the company
headquarters in London, despite calls by regulators in the
German state of Hesse to transfer more responsibility to
Germany. The Brexit vote has amplified those demands.
Kengeter said that Deutsche Boerse would create an
additional 300 jobs in Frankfurt, adding that he was engaged in
constructive talks with policymakers in Hesse, Deutsche Boerse's
home state, and with antitrust regulators in Brussels.
Regardless of where the combined holding company will be
headquartered, the regulatory laws ensure that Frankfurt retains
key responsibilities over the Frankfurt Stock Exchange and Eurex
Deutschland, Kengeter said.
"The two exchanges as well as post trading and the market
data business will remain in Frankfurt, even after the merger,"
($1 = 0.9407 euros)
(Editing by Maria Sheahan/Keith Weir)