Now Germans want to reject London Stock Exchange bid

GERMAN politicians are piling pressure on a potential buyer of the London Stock Exchange to abandon its promises and base the institution’s head office in Frankfurt.

Deutsche Boerse hopes to take over the 215-year-old exchange in a £21bn deal both sides insist would be a ‘merger of equals’.

However, the institution would report its profits in euros and be led by Deutsche boss Carsten Kengeter. The German firm’s shareholders would have a 54.5pc controlling stake.

Bosses have promised the new company will be headquartered in London as a fig leaf to ward off claims they are acting against Britain’s national interest.

But German leaders see it as a huge potential prize for their own economy.

Manfred Zass, a former Deutsche Boerse director, has warned the proposals could damage Frankfurt’s standing as it aspires to become a rival financial centre to the City.

And German politicians claim it is vital the company is based on the Continent – particularly if Britain dares to vote to leave the EU. Ulrich Caspar, a member of the state parliament, said: ‘It’s a problem if the headquarters of the holding company will be outside the eurozone and, if Brexit happens, outside the European Union.’

His colleague Clemens Reif told the Financial Times that a victory for the ‘Leave’ campaign in the referendum on June 23 would mean London would cease to be ‘an international financial centre’ and become ‘a city whose significance worldwide will be declining’.

British politicians reacted with fury to the remarks. Sir Bill Cash, a leading Eurosceptic and Tory MP, said: ‘The Germans want to run not only the eurozone but also the EU as a whole. There is no limit to their desire to take over institutions like the stock exchange.

‘Frankfurt has never shown any capacity for the flexibility and entrepreneurship which the London Stock Exchange represents,’ he said.

Cash called on Business Secretary Sajid Javid to step in and block the deal.

It is already being scrutinised by the Bank of England and moves are afoot to quiz stock exchange bosses in Parliament.