Deutsche Börse staff resist London move in wake of £30 billion LSE takeoverComments Off on Deutsche Börse staff resist London move in wake of £30 billion LSE takeover
Deutsche Börse employees have demanded that its headquarters remain in Frankfurt rather than the planned move to London once its £30 billion merger with the London Stock Exchange goes through.
The Börse’s works council said: “The planned constellation is not a merger of equals. Key corporate decisions will be made solely from London in the future; Frankfurt’s loss of significance is pre-programmed.”
The council called for Frankfurt jobs to be guaranteed for 20 years and rejected compulsory redundancies. Some 1250 jobs could be cut in the merger.
It also questioned Deutsche chief executive Carsten Kengeter’s abandonment of the option to grow the business.
“Alternative proposals for inorganic growth through economically and strategically sensible acquisitions — buy-and-build — appear no longer to be pursued, although Deutsche Börse’s competitors were making a success of this strategic option,” the works council said.
Its opinions could prove important with local politicians and regulators who have already questioned the deal.
LSE shareholders are due to vote on the takeover on July 4 while Deutsche Börse investors have until July 12 to tender their existing shares for shares in the combined company.