Saudi telecom giant STC seeks board seat at Telefonica
MADRID (Reuters) - Saudi Arabia's largest telecoms operator, STC Group, has filed with the U.S. markets regulator to seek a seat on Telefonica's board, six days after the Spanish company unexpectedly replaced its chief executive.
STC said in a filing late Thursday it now owns 9.97% of Telefonica and plans to "engage in discussions with the issuer to seek a board seat."
Telefonica, which has American Depositary Receipts listed in the U.S., did not immediately respond to a request for comment.
The Spanish telecoms giant has undergone an ownership shake-up since STC announced in September 2023 its intention to become a major shareholder.
As Telefonica is considered a defense service provider and therefore strategic, the Spanish government responded to STC's announcement by buying its own 10% stake through state holding company SEPI, while Spanish holding company Criteria also raised its stake to 9.99%.
Following these moves, the government authorized STC in November 2024 to increase its stake in Telefonica to nearly 10%.
STC's move to seek a board seat at Telefonica comes after the Spanish company held an extraordinary meeting on Saturday to replace CEO Jose Maria Alvarez-Pallete with Marc Murtra, who was previously chairman of defense company Indra, at the request of SEPI.
Telefonica's shares have fallen 4.3% since the management shake-up was announced, with investors concerned about political interference.
(Reporting by Emma Pinedo and Inti Landauro; Editing by Mark Potter)