(Repeats Thursday's story without changes)
By Andreas Kröner
FRANKFURT Jan 12 Top executives from Deutsche
Boerse and the London Stock Exchange will meet a top German
politician to resolve a dispute about where to locate the
combined group's headquarters, three sources said, with pressure
growing for it to be in Frankfurt.
The meeting on Jan. 17 comes as Britain's government
prepares to trigger divorce talks with the European Union, a
move that has put a question mark over the deal and created
uncertainty over the City of London's future.
Britain's departure from the 28-member bloc would place
London, Europe's financial capital and planned headquarters of
the new group, outside the EU.
German regulators, fearing a loss of control, want Frankfurt
to play the leading role, or, at the very least, be one of two
The meeting will be held in Wiesbaden, in the state of
Hesse, where Frankfurt is also located. It will be attended by
one of Germany's top politicians, Volker Bouffier, the state's
premier and an ally of Chancellor Angela Merkel.
"Those at the meeting want to come face to face to find out
what could work but nothing will be finalised," said one of the
people with knowledge of the plans, adding that the question of
where the headquarters should be would be high on the agenda.
London Stock Exchange Chief Executive Xavier Rolet and
Carsten Kengeter, head of Deutsche Boerse, will travel to the
meeting. The chairmen of both firms, Deutsche Boerse's Joachim
Faber, and Donald Brydon from the LSE, will also attend.
Deutsche Boerse and the London Stock Exchange declined to
comment. Bouffier's office could not immediately be reached.
LSE management want the headquarters to stay in London. But
it is unlikely that Germany will agree.
Shortly after the vote in Britain to leave the European
Union, Germany's financial market regulator, Felix Hufeld, said
London could not host the headquarters.
This position has since hardened, creating a hurdle to the
planned $25 billion merger.
On Wednesday, the head of the European Central Bank, Mario
Draghi, said that it too would carefully look at the proposed
merger, particularly given Britain's decision to leave the EU.
"The United Kingdom's withdrawal (from the EU) may lead to a
loss of oversight and supervision of UK central counterparties
by the ECB," Draghi wrote in a letter to a European lawmaker.
(Additional reporting by John O'Donnell and Arno Schuetze;
writing by John O'Donnell; Editing by Elaine Hardcastle)