The chief executive and non-executive chairman of Deutsche Börse have resigned after overwhelming pressure from Anglo-American shareholders, who had made it clear they would seek both men's removal if they did not resign quickly.

The departures, after a five-month battle over the direction of the world's largest listed stock exchange, are a landmark in German corporate affairs.

Germany is in the throes of a debate about foreign investors' influence over companies in a country that has traditionally favoured long-term corporate health and job security over short-term shareholder returns.

Werner Seifert, chief executive, has left the German group with immediate effect, passing responsibility to Mathias Hlubek, finance director.

Rolf Breuer, chairman of the supervisory board, will step down at the end of the year, after bringing in four new non-executives to "better reflect the current shareholder structure of the company".

Mr Seifert transformed Deutsche Börse over the past 12 years from a local exchange operator into one of the world's most successful groups.

But last December when he announced a planned £1.35 billion (€1.97 billion) takeover of the London Stock Exchange, four years after a failed merger with the LSE he set himself on a collision course with investors.

The proposed deal was withdrawn later after shareholders, led by London-based hedge funds TCI and Atticus Capital, complained it would destroy shareholder value. But the dispute continued. TCI led calls for the supervisory board to contain non-executives that better reflect the current shareholder base.

Some shareholders said Mr Seifert's departure could pave the way for consolidation plans, such as a merger between Deutsche Börse and rival Euronext. - (Financial Times Service)