UPDATE 1-KPN's new CEO says home, office searched in Belgian share probe - agency

The incoming chief executive of Dutch telecom firm KPN, Dominique Leroy, said Belgian police had searched her home and office in connection with a probe into her sale of shares in Proximus, the firm she is leaving, Belga news agency reported.

Belgium's stock market watchdog FSMA said on Sept. 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 from the police probe. Leroy, who leaves Proximus on Friday and is due to start work at KPN on Dec. 1, denies any wrongdoing.

KPN spokeswoman Victorina de Boer said KPN was aware of the Belgian investigation but had no further immediate comment. Reuters could not immediately reach Leroy for comment. Proximus had no immediate comment.

Leroy sold shares in Proximus, where she has been CEO, worth 285,000 euros ($315,000) at 26.26 euros on Aug. 1, her first transaction in three years. When Leroy's departure was announced on Sept. 5, the news boosted KPN's share price and sent Proximus shares down by 2.5%. 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. Leroy, 54, had initially been scheduled to leave Proximus on Nov. 30. Her departure was moved to Friday after the union complaints.