March 17 (Reuters) - Spain's government has urged state holding company SEPI to dismiss the chairman of defence company Indra following a dispute over his plan for it to take over his family firm,
Spanish Government Pushes for Removal of Indra Chairman Amid Acquisition Row
Government Intervention in Indra Leadership and Acquisition Plans
Background of the Dispute
March 17 (Reuters) - Spain's government has urged state holding company SEPI to dismiss the chairman of defence company Indra following a dispute over his plan for it to take over his family firm, Spanish news website El Confidencial reported on Tuesday.
Market Reaction to the News
Shares in Indra fell by about 8% following the report, leaving the company at the bottom of the Stoxx 600 index. They were down 6.2% at 1235 GMT.
Details of the Proposed Acquisition
Chairman’s Acquisition Pursuit
Earlier this year, Chairman Angel Escribano began pursuing the acquisition of defence contractor Escribano Mechanical and Engineering, or EM&E.
Ownership Structure
Escribano owns half of EM&E while his brother, Javier, holds the other half and serves as its CEO.
In turn, the family firm has a 14.3% stake in Indra, making it the second-largest shareholder behind state-owned SEPI, which has a 28% stake.
Government’s Position and Board Dynamics
Calls for Chairman’s Resignation
According to the report, which cited sources familiar with the matter, the government wants Escribano to step down before Indra's next board meeting on March 25.
Company Responses
Indra declined to comment on the report and EM&E did not immediately respond to Reuters' request for comment.
Meetings and Political Pressure
According to El Confidencial, Prime Minister Pedro Sanchez's most senior economic adviser met last week with the head of SEPI to request Escribano should step down. Indra CEO Jose Vicente de los Mozos was also present, the report added.
Board Support for Escribano
However, other sources told El Confidencial the Escribano brothers felt they had the backing of a majority of the board.
Leadership Changes at Indra
Recent Appointment of Escribano
Escribano was named to the post in January 2025 after Indra's previous chairman, Marc Murtra, was picked to lead Telefonica, Spain's biggest telecom company.
Reporting Credits
(Reporting by Gemma Guasch; Editing by David Latona and Barbara Lewis)
