German stock exchange works council says new deal needed with LSE

The works council at Germany's Deutsche Boerse stock exchange has demanded key changes to the planned merger with the London Stock Exchange (LSE) following the British vote to leave the European Union, or Brexit.

Instead of sticking stubbornly to the current deal, management must push aggressively for Frankfurt to become the new head office of the merged exchanges, council head Jutta Stuhlfauth said in conversation with dpa and dpa-AFX.

"We need new negotiations right now. The birth defects of the merger have to be eradicated," she said, adding that shareholders and customers need certainty for financial planning.

Stuhlfauth's council represents workers at Deutsche Boerse.

Deutsche Boerse and LSE finalized their plans to merge in March. Deutsche Boerse's shareholders and various supervisory authorities have still to approve the deal.

The deal has become less solid following the referendum result in Britain on June 23 when the majority of voters decided they wanted to leave the EU.

As Europe's largest financial centre, London had been touted as the new head office, but this is less certain with its future outside the EU.

"The management was caught completely unprepared by the Brexit decision," Stuhlfauth said. "There was no plan B."

Last update: Sun, 17/07/2016 - 14:40
Author: 

More from Business

Tobacco giant BAT agrees to 49-billion-dollar takeover of US rival

British American Tobacco Plc on Tuesday said it has finalized a deal to acquire 57.8 per cent of shares of US rival...

IMF raises China growth forecast, but warns of sharper slowdown

China's economy will expand by 6.5 per cent this year, the International Monetary Fund said on Monday, as it warned...

Trump's warning to German carmakers hits shares

Shares in German carmakers tumbled on Monday after incoming US president Donald Trump threatened the industry with...

Report: Ex-Volkswagen head knew about scandal two months before

Former Volkswagen chief executive Martin Winterkorn knew about the company's emissions scandal two months earlier...

Takata to pay 1-billion-dollar criminal fine over defective airbags

Beleaguered Japanese car-parts supplier Takata has agreed to pay a criminal penalty of 1 billion dollars, and three...