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Report: LSE prepares back-up CEO as dispute with activist investor continues

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Report: LSE prepares back-up CEO as dispute with activist investor continues

The board of London Stock Exchange Group Plc plans to appoint group CFO David Warren as interim CEO should Xavier Rolet leave the company early, as the feud between the company and an activist investor heats up, the Financial Times reported, citing "two people briefed on its plans."

The contingency plan comes after activist hedge fund The Children's Investment Fund, or TCI, called on the Bank of England and the U.K. Financial Conduct Authority to intervene with LSE's governance crisis by instructing the company's board to appoint a new chairman to replace Donald Brydon.

TCI, which was founded by Christopher Hohn, has called for an extraordinary shareholder meeting to vote on the removal of Brydon — who it claims is behind the decision to force Rolet out of the company — and the extension of Rolet's contract until 2021.

In a letter to Brydon, Hohn said Rolet was "being improperly threatened by the board with severe reputational damage" unless he steps down immediately or publicly announces that he does not want to remain, and suggested that the matter calls for immediate intervention by the BoE and the FCA, the FT noted.

LSE announced in October that Rolet will step down by the end of December 2018.