Spanish Government Escalates Pressure on Indra Chairman Over Conflict of Interest
Madrid, Spain – The Spanish government is intensifying scrutiny of Indra, a major defense and technology company, and its chairman, Ángel Escribano, over a potential conflict of interest related to a proposed merger. The state-owned Sociedad Estatal de Participaciones Industriales (SEPI), which holds a 28% stake in Indra, issued a statement late Tuesday expressing “concern” about the influence of the conflict on the evaluation of a possible integration with Escribano Mechanical & Engineering (EM&E), a company owned by Escribano and his brother, Javier.
The SEPI statement, filed with the National Securities Market Commission (CNMV), emphasized that the merger “should not be conceived as an instrument to resolve the conflict of interest, nor should it be influenced by it.” Instead, SEPI urged a resolution to the conflict to allow for a fair assessment of the deal’s benefits for Indra.
The move signals a significant escalation in the government’s public dissatisfaction with the proposed merger, previously met with near-unanimous shareholder approval for Escribano’s ratification last June, with 98.49% of votes in favor.
Despite this prior support, and backing from investment funds like Amber, which favor the merger, the government appears determined to address the perceived conflict. SEPI’s intervention comes as Indra prepares for a board meeting on March 25th, where the merger is expected to be a key topic of discussion. A committee of independent directors was previously established to oversee the deal and manage the conflict of interest.
The situation highlights the complexities of corporate governance and potential conflicts within publicly traded companies, particularly those with close ties to government interests. The outcome of the board meeting and the resolution of the conflict will be closely watched by investors and industry observers alike.
This is a developing story and will be updated as more information becomes available.