£9m insider trading deal

DEUTSCHE Boerse has agreed to pay penalties worth more than £9m to settle an insider trading investigation against its boss.

Prosecutors in Frankfurt looked into whether chief executive Carsten Kengeter had bought shares in Deutsche Boerse despite knowing it was in talks to buy the London Stock Exchange (LSE).

But the investigation now looks set to the formally dropped after the German company agreed to pay £9.3m of fines, to draw a line under the scandal. It is thought that 50-year-old Kengeter, who lives in Wimbledon in London and sends his children to British schools, could also face a small fine. Deutsche Boerse – whose planned merger with the LSE was abandoned earlier this year – will hope the deal lifts the cloud over Kengeter. The company said that although it has accepted the fines, it maintains the allegations were unfounded. ‘ By doing so, Deutsche Boerse aims to ensure that the company can refocus as quickly as possible on managing the business and leave behind the serious burdens placed on it by the investigation proceedings,’ it said.

‘Deutsche Boerse, however, does not share the public prosecutor’s view concerning the accusations raised.’

Kengeter’s reputation has been damaged by his failed attempt to land the LSE and create a £21bn financial powerhouse. The deal fell apart when it was blocked by European regulators, much to the relief of UK critics worried part of the City’s infrastructure could fall into German hands.