Spanish Government Seeks to Replace Telefonica Chairman Pallete

Spain’s government is seeking to replace Telefonica SA Chief Executive Officer and Chairman Jose Maria Alvarez Pallete, according to people with knowledge of the matter.

Telefonica’s top shareholders — Spanish state holding company Sepi and Criteria Caixa SA — have kicked off the process. The carrier is set to hold an urgent extraordinary board meeting as soon as Saturday to approve the change, the people said asking not to be identified discussing private negotiations.