FRANKFURT Feb 27 The London Stock Exchange
(LSE) had doubts about the suitability of Deutsche Boerse CEO
Carsten Kengeter to lead a combined company after insider
trading allegations were made against him, two sources familiar
with the matter said on Monday.
LSE Chairman Donald Brydon wrote an email to
Deutsche Boerse Chairman Joachim Faber to express his
concerns in early February, shortly after prosecutors searched
Kengeter's apartment in connection with suspected insider
trading, the sources said, adding they had seen the email.
Kengeter has said the allegations made against him are
Some people familiar with the matter said the LSE's doubts
over Kengeter played a role in its decision to scupper a merger
with Deutsche Boerse. The LSE decided late on Sunday
not to sell its stake in Italian trading platform MTS, a step
that all but ended a planned tie-up.
Other sources, however, said the LSE's reluctance to discuss
moving the headquarters of the merged company to Frankfurt from
London in the wake of Britain's vote to leave the European Union
was a more important consideration.
Deutsche Boerse, Kengeter and the LSE declined to comment.
In his email, the LSE's chairman said advisers had told him
they were no longer sure whether Kengeter was the right person
to take over as chief executive following a merger, the sources
Faber replied to Brydon by defending Kengeter, saying the
presumption of innocence must prevail, the sources added.
On Feb. 7, Deutsche Boerse publicly backed Kengeter as
prosecutors investigated whether secret merger talks with the
LSE were under way when Kengeter bought shares in his company in
(Additional reporting by Arno Schuetze; Editing by Mark Potter)