Telefonica chairman resigns amidst controversy

NEWS Juan Villalonga, the chairman of Spanish telco Telefonica, has resigned amid speculation of insider dealing and wrangling with the Spanish government. Villalonga transformed the company from a monopoly to a fast-growing international telco through a number of alliances and acquisitions. However, the most recent talks with Dutch telco Royal KPN for a $58bn merger fell through in May after government opposition, and it's thought this is the key factor behind Villalonga's departure. Cesar Alierta, chairman of the Spanish-based tobacco company, Altadis, has been named as his successor.