Daily Management Review

Deutsche Börse is preparing Plan B while its CEO is being investigated


08/10/2017


Deutsche Boerse is already developing a plan of action in case its chief executive director, Carsten Kengeter, who is being investigated, will have to resign. This is reported by German newspaper WirtschaftsWoche.



dontworry
dontworry
According to the newspaper, Karsten's position in case of his dismissal may be occupied by his current deputy Andreas Preuss. Gregor Pottmeyer, financial director of Deutsche Boerse, is also considered as a candidate for the post of new chief executive officer of the German stock exchange.

Carsten Kengeter is having a bad year. His deal with London Stock Exchange Group Plc for $ 14 billion fell through, he is being investigated on suspicion of insider trading, and the regulator in Germany is checking reliability of his entire management team.

Earlier, Head of Deutsche Boerse advertised new Scale market as an ideal way for small German companies to raise capital. However, just four months after the launch of Scale, the country's market regulator began an investigation in connection with suspicious transactions on shares of one of the companies in this market. Shares of Naga Group AG, a Hamburg finance and technology company, soared after an IPO, but collapsed soon after.

"If there are problems with the IPO, this is a bad sign, and this creates a bad reputation for the new Scale market," said Alexander Thomas, a partner in the law firm Pinsent Masons. "If there are market manipulations, this is not the fault of Deutsche Boerse, but this creates a bad reputation. You destroy the confidence that you want to create. "

The investigation into possible manipulation of Naga shares followed a five-month investigation into Kengeter on suspicion of using insider information about the deal with the London Stock Exchange.

Investigators are studying a case when Kentgener purchased shares of Deutsche Boerse for € 4.5 million in December 2015 - two months before it became known that Deutsche Boerse is in talks to merge with the LSE. After the information became public, Deutsche Boerse's quotes rose sharply. In March, the European Commission blocked the merger of LSE and Deutsche Boerse. LSE refused to sell the Italian MTS platform, as the European Commission insisted.

The operator of the exchange did not want to spoil relations with regulators and clients in Italy. The share of the Italian business, of which MTS is a part, accounts for about 25% of London Stock Exchange Group's operating profit.

The plans for the merger of LSE and Deutsche Boerse were announced in March 2016. As a result, it was planned to create a powerful platform for derivatives trading and strengthen ties between the London financial center and Frankfurt, where the ECB is located and instrument settlements in euros are taking place. The total capitalization would be 24 billion euros.

source: wiwo.de






Science & Technology

Wreck Of Russian Ship Rumoured To Have 5,500 Boxes Of Gold Found Near South Korean Island

Gene Editing of Human Embryo Could Find ‘Moral’ Grounds: UK’s Ethics Council

Baidu comes up with a self-driving bus

Developing countries are stepping up their own space programs

McAfee: Number of cybercrime attacks skyrocketed

RemoveDebris Mission To Clear Debris Of In Orbit Over Earth

British experts: Online gambling is dangerous

Vodafone Chooses ‘Highly Trafficked Urban’ Space As Its 5G Testing Grounds

Space To Become A Travel Destination By 2022

Dream Of Immortality Can Be Realised By 2045

World Politics

World & Politics

Ireland pledges to stop investing in fossil fuels

Germany asks to return € 4 thousand subsidies for the purchase of Tesla

Was Trump's visit to the UK the last straw?

Prime Minister May Could Alter Brexit Strategies, Said Ress-Mogg

Le Maire: The US refused to release France from anti-Iran sanctions

One Belt, One Road is facing difficulties around the world

Qatar to raise $ 4 billion to buy Eurofighter Typhoon jets

The UK sets to turn all cars zero-emission by 2030