, Columnist
Telefonica's Missed Opportunity
Pallete's missed an opportunity to maximize his bargaining position.
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It can't have been easy for Telefonica Chairman Jose Maria Alvarez-Pallete to cut the dividend only seven months into his tenure, and less than two months after assuring investors it was safe. So, credit to him for trying to do the right thing on Thursday.
Unfortunately, the move doesn't go far enough to ensure that Telefonica regains control over its own destiny and avoids a credit-rating downgrade.