Prosecutors in Germany have abandoned an insider trading investigation into Carsten Kengeter, the former chief executive of Deutsche Borse in exchange for a settlement amounting to €4.8 million (£4.3 million).
German prosecutors were investigating the purchase of shares of Kengeter in the German exchange last December 2015, two months prior to its announcement that it was in discussions to merge with the London Stock Exchange.
The prosecutors in Frankfurt agreed to drop the investigation after Kengeter said that he would make a €250,000 charitable donation and pay a fine amounting to €4.5 million.
Last month, Deutsche Boerse said that it would be paying a fine amounting to €10.5 million in order to resolve the insider trading case, and at the time, it said that an investigation against Kengeter had been dropped.
In a statement that was released by Deutsche Boerse last month, it stated that it “remains firmly convinced that the allegations were unfounded.” However, it decided not to appeal over the 10.5 million euros worth of fines over the case.
However, it stated: “After a detailed examination and weighing all relevant aspects, Deutsche Boerse concluded that a termination of the proceedings on this basis is in the best interest of the company.”
Kengeter left his position as the boss of Deutsche Boerse in late 2017 amid the disruption that was caused by the probe. The payment does not constitute an admission of guilt by Kengeter, who has repeatedly maintained his innocence.
Both Kengeter and the firm denied any wrongdoing. It said that he acquired the shares as part of an official executive compensation programme.
Kengeter could not be reached for comment regarding the matter. However, the announcement sent their share prices shooting upwards.
The proposed merger between the London Stock Exchange and Deutsche Boerse was blocked by the regulators in the European Union in 2017 over competition concerns.