Telefónica Shares Drop Following Presidential Change
Telefónica stocks dip 3% amid leadership transition prompted by government; Key stakeholders support the move
Telefónica, a major player in the telecommunications sector, witnessed a 3.2% drop in its share price during mid-session trading on Monday, following the recent presidential transition influenced by the Spanish government.
The shares were trading below €3.85, distancing from the €4 threshold.
Meanwhile, the Ibex 35 index remained stable.
Over the weekend, the government prompted a leadership change, replacing Jose María Álvarez-Pallete with Marc Murtra, considered a trusted ally of the administration.
This transition has been endorsed by significant shareholders, such as Criteria Caixa and BBVA.
María Jesús Montero, Spain's First Vice President and Minister of Finance, stated that the leadership change was timely and necessary to ensure that Telefónica remains competitive in an increasingly challenging European and international market, with particular emphasis on cybersecurity and technology.
The Spanish State holds a 10% stake in Telefónica through the Sociedad Estatal de Participaciones Industriales (SEPI), making it the primary shareholder.
Criteria Caixa and Saudi Arabia's STC each hold 9.9%, including derivatives, with BBVA following with 4.8%.
The company's ownership structure has experienced significant changes since STC's entry in 2023, prompting efforts to prevent foreign control over this strategic enterprise.
With Murtra's move from Indra to Telefónica, Ángel Escribano, a leading figure at Escribano Mechanical and Engineering, has been appointed to fill the vacancy at Indra.
His initial challenges will involve potential strategic decisions concerning the sale of Minsait and acquisition of Hispasat.
While Telefónica's stock experienced a downward trend, Indra's shares surged, noting an increase of up to 3.5% in early trades and a 2.60% rise by mid-session.
Criticism has emerged from opposition parties, who argue that the government's intervention signals an attempt to exert influence over private enterprises, potentially jeopardizing Telefónica's independence through what they describe as undue interference.
The shares were trading below €3.85, distancing from the €4 threshold.
Meanwhile, the Ibex 35 index remained stable.
Over the weekend, the government prompted a leadership change, replacing Jose María Álvarez-Pallete with Marc Murtra, considered a trusted ally of the administration.
This transition has been endorsed by significant shareholders, such as Criteria Caixa and BBVA.
María Jesús Montero, Spain's First Vice President and Minister of Finance, stated that the leadership change was timely and necessary to ensure that Telefónica remains competitive in an increasingly challenging European and international market, with particular emphasis on cybersecurity and technology.
The Spanish State holds a 10% stake in Telefónica through the Sociedad Estatal de Participaciones Industriales (SEPI), making it the primary shareholder.
Criteria Caixa and Saudi Arabia's STC each hold 9.9%, including derivatives, with BBVA following with 4.8%.
The company's ownership structure has experienced significant changes since STC's entry in 2023, prompting efforts to prevent foreign control over this strategic enterprise.
With Murtra's move from Indra to Telefónica, Ángel Escribano, a leading figure at Escribano Mechanical and Engineering, has been appointed to fill the vacancy at Indra.
His initial challenges will involve potential strategic decisions concerning the sale of Minsait and acquisition of Hispasat.
While Telefónica's stock experienced a downward trend, Indra's shares surged, noting an increase of up to 3.5% in early trades and a 2.60% rise by mid-session.
Criticism has emerged from opposition parties, who argue that the government's intervention signals an attempt to exert influence over private enterprises, potentially jeopardizing Telefónica's independence through what they describe as undue interference.
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