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Deutsche Boerse's chairman signals may not serve full term

Reuters  |  FRANKFURT 

(Reuters) - The of Deutsche Boerse's said on Wednesday he would not insist on serving another full three-year term amid criticism that he is partly to blame for management missteps.

Shareholder Hermes EOS and other investors have said should pave the way for a successor after the company's former stepped down last year amid an ongoing insider trading investigation.

"I reserve the right to prepare for a transition in the chairmanship of the during the next term of office," Faber told shareholders at the company's annual general meeting, where he was up for re-election.

Faber didn't elaborate on timing of the transition.

The German is seeking to open a new chapter after it last year became entangled in the insider trading scandal, a failed merger with Stock Exchange, and a profit warning.

Theodor Weimer, who took the reins on Jan. 1 as the company's new executive, told shareholders that he was on the lookout for acquisitions as one of the pillars of the company's growth strategy.

Acquisitions were "part of our strategy, in particular where it would complement our business", he said.

Acquisition priorities include fixed-income securities, energy products, currencies, services for investment funds, data and indices, he said.

But Weimer also ruled out some mega deals, a year after the collapse of Deutsche Boerse's proposed merger with LSE.

"Transformational transactions, whereby we thereafter no longer hold majority, or our headquarters is no longer in Hesse, are not an option for us," he said.

Soon after taking the helm, Weimer announced that he would review the company's strategy and last month outlined the broad cornerstones of its plans.

Weimer's comments at Wednesday's annual general meeting flesh out that roadmap and further details are expected later this month.

Another pillar of the strategy is organic growth and investment, with Weimer saying that Britain's exit from the offers business opportunities.

aims to win a quarter of the lucrative euro clearing market from

"It is up to us, in the interest of our customers, to provide a well-organised transition to a new European market

order," Weimer said.

The has also been studying cost cuts and staff reductions. He said that up to 50 management-level staff could lose their jobs.

(Reporting by and Tom Sims; Editing by Maria Sheahan, and Adrian Croft)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, May 16 2018. 19:03 IST