LSE comes clean on departure of Rolet

The stand-off between investors and the board of the London Stock exchange is set to escalate as directors prepare to publish evidence they say shows outgoing boss Xavier Rolet was overly domineering.

Board members are reportedly considering whether to fend off a shareholder revolt over his surprise departure with emails revealing a dismissive, overbearing manner.

A five-man committee is preparing a dossier outlining his run-ins with executives and directors over the past two years to quash rumours that the chief executive was forced out unfairly.

Rolet announced he would be stepping down last month. At the time, both sides said it was an amicable decision and Rolet would leave by the end of 2018.

But senior investors called on the board to explain why he was off, given his assurance months earlier that he would be staying.

One top-ten shareholder claimed Rolet, 58, had said his retirement was ‘postponed’ and he was ‘back in the seat’ at an investor meeting in June – four months before he decided to quit.

Another shareholder at the open day said Rolet had reiterated his commitment to the LSe six weeks after being put forward for reelection as chief executive – garnering 99.5pc of investor support.

Sir Chris hohn, founder of The Children’s Investment Fund, sent an explosive letter to LSe chairman Donald Brydon demanding that he explain why Rolet was leaving – and even suggested Brydon had forced him out.

Sir Chris used his 5pc holding in the LSe to force it to call a shareholder meeting before Christmas to vote on whether Brydon himself should be sacked and Rolet reinstalled.

But LSe directors are fighting back, with one person close to the board saying there had been ‘an accumulation’ of incidents in which Rolet clashed with them.

The board committee, led by Paul heiden, a senior non-executive director, is considering publishing emails sent by Rolet. To maintain his independence, Brydon is not on the committee.

One associate said Rolet was ‘a passionate, opinionated person’, adding: ‘If he differs from you he will end up doing what he wants.’

A source close to the LSe said: ‘The facts, not the opinions around this issue, will be set out.’

Rolet has run the LSe for more than eight years, and is credited with changing it from an £800m business to one worth £14bn.

But his star fell after his attempt to sell the LSe to Deutsche Börse was blocked by the eU in March. MIND Candy, maker of the children’s web game Moshi Monsters, has secured £760,000 in funding to stay afloat.

It’s the second bailout, having secured £1.2m to pay highinterest loans in April, when it also negotiated a two-year extension on a £6.5m loan from TriplePoint Capital.

The firm, founded by chairman and creative director Michael Acton Smith, pictured with a Moshi Monster, became one of Britain’s early tech risers after targeting young gamers.

Users play as monsters on the firm’s website and keep pets called Moshlings. They can connect with each other and chat on a forum. At its peak in 2012, the firm’s sales reached £47m.

But Moshi Monsters failed to generate enough cash after only a few users paid for it. The firm also failed to make a game for Apple devices until 2013.

It was forced to cut staff and sales slumped to £7.1m in 2015.

Chief executive Ian Chambers said it had raised enough from investors, including venture capital fund Accel and LocalGlobe, to keep it afloat for a few weeks, but it was likely to need more at the start of 2018.