The public prosecutor in Brussels has launched an investigation into suspected insider trading by Dominique Leroy, the CEO of Proximus, and designated new CEO of KPN.
Raids were conducted at her home and Proximus offices, local press reported. Belgium’s stock market watchdog FSMA said on September 6 it was looking into the share transaction as part of a “standard procedure.” The watchdog’s investigation, which could lead to a fine, is separate to the police probe.
Leroy sold shares in Proximus, where she has been CEO, worth EUR285,000 on August 1, her first transaction in three years.
In a personal open letter Leroy said it was a routine sale after Proximus reported second quarter earnings on June 30. She said she had not decided at the time to leave Proximus, although she said she was in confidential talks with KPN and other potential employers.
Belgian labour unions complained about her departure, saying she could take company secrets to a competitor. They also questioned the legitimacy of her August share transaction.
Although Leroy was meant to stay at Proximus till her departure for KPN on December 1, but Proximus has ended her employment with immediate effect.