DAVID HAFFENREFFER, CNN ANCHOR: Telefonica's chairman may be under fire at a board meeting today. The company recently bought Lycos. Janet Guyon, of "Fortune" magazine, joins me now from London. Janet, why is the Spanish chairman under fire here?</s>JANET GUYON, LONDON BUREAU CHIEF, "FORTUNE": Well, the proximate cause of the recent controversy is some stock options that the chairman, Juan Villalonga, bought about two years ago, and there's a reopening of an investigation to see whether he bought those with insider information. Now, the Spanish regulatory authorities have looked into this matter before and cleared him, but some newspaper reports, some newspaper reports from one of the pro-government newspapers, have suggested that perhaps he knew more than he admitted then; and they're reopening an investigation. But, truly, this a political issue. Villalonga is having had a falling out with his childhood friend, the prime minister of Spain, and the government has kind of been after him for the last couple of months. The last board meeting of Telefonica in May, there was a lot of speculation that he would be under pressure. So it's not a surprise that this is coming up again.</s>HAFFENREFFER: Are we likely to see a resignation in this case?</s>GUYON: Not today, I think it's unlikely that will happen today. This investigation into these stock options is not complete and there really is no obvious successor. But I think he will continue to be under pressure. Now, today, the stock market seems to think that he's clear at the moment. Telefonica's shares are up about 3.16 percent. So, certainly, I don't think we'll see a resignation today, but I think that this controversy will continue to brew over the next few months.</s>HAFFENREFFER: All right, Janet, thank you very much. We will check back in with you a little bit later on in the program.
'Fortune': Telefonica's Juan Villalonga Faces Hostile Board Today