LSE submits merger plans as Deutsche Boerse rejects insider claims

As London Stock Exchange and Deutsche Börse submitted their revised merger plans to European competition regulators, the German exchange dismissed claims of insider trading hanging over its chief executive.

Following talks with the European Commission, London Stock Exchange and Deutsche Börse directors hope to gain regulatory clearance for their proposed £21bn merger when officials report back on 3 April with the final results of a competition investigation.

Meanwhile, the German exchange's supervisory board said it found no evidence of insider trading by chief executive Carsten Kengeter, with its probe showing no evidence that London Stock Exchange talks had started until last year.

Local law enforcement officers have been investigating whether secret merger talks with LSE had already begun when Kengeter snapped up €4.5m of shares in December 2015.

Meanwhile, in a separate report on the merger, LSE said it expected to spend up to around £175m on fees and expenses in connection with the merger, with DB spending only €150m.

German politicians were reported to be increasingly opposed to the deal, the Times said, in particular that the combined group’s holding company would be UK-registered.

“The reason for the headquarters being in Frankfurt are crystal clear,” Thomas Schäfer, finance minister of the state of Hesse, which must approve any deal, said. “Those involved in London must recognise, also in their own interests, that it would not be a good idea to keep the plans as they are now.”