Dutch operator KPN withdrew the appointment of former Proximus CEO Dominique Leroy as its new boss due to an ongoing investigation by Belgian authorities over share dealing.

Leroy had her home raided by police over her sale of €285,000 worth of shares in Proximus in August, a month before her departure. Shares in the company fell after her departure announcement.

Leroy denied any wrongdoing, stating she did not decide to leave at the time of the shares sale. She was unveiled to replace KPN CEO Maximo Ibarra in the first week of September and was meant to fully take the reins of the Dutch operator on December 1.

Due to the withdrawal of Leroy, the extraordinary general meeting of KPN shareholders scheduled for October 28 has been cancelled.

KPN member of the board Joost Farwerck will continue on as temporary chairman of the board of management and executive committee.

Duco Sickinghe, supervisory board Chairman of KPN, said: “This was a difficult decision for the Supervisory Board, given the track record of Mrs. Dominique Leroy as a very accomplished executive. However, the uncertainty around timing results in a situation which the Supervisory Board considers not in the interest of KPN. We wish her all the best.”