Telefonica Revamps Regional Units in Bid to Stem Stock Drop

Telefonica SA folded its struggling domestic unit into a European division and shuffled the heads of its regional businesses as Spain’s largest telephone company tries to halt a slide in its stock.

Chief Strategy Officer Santiago Fernandez Valbuena, 53, will take over the Latin American unit from Jose Maria Alvarez-Pallete, who will oversee the enlarged European unit including Spain, Telefonica said yesterday. The former phone monopoly also appointed Angel Vila, 47, as head of finance and said it will create a digital division in London run by Matthew Key, 48.