Peter Erskine to Step Down As Telefonica O2 Europe Boss

The boss of O2, Peter Erskine is to step down as Chairman and Chief Executive Officer of the company with effect from 31 January 2008. He retains his position on the Board of Telefónica, moving to the role of Non-Executive Director from 1 February 2008. No reason was given for the decision.

Matthew Key, currently CEO of O2 UK, the largest business within Telefónica O2 Europe is to take over as the new Chairman and CEO of Telefónica O2 Europe.

Announcing the changes, Executive Chairman of Telefónica S.A., César Alierta, said: "In the course of the last six years, Peter has built a business and brand of exceptional value. Since the acquisition of O2 by Telefónica two years ago, he has worked closely with me and has been instrumental in ensuring the success of the merger of the two businesses, whilst contributing to a significant increase in shareholder value and the growth of Telefónica as one of the worldÃ's leading telecommunications companies. I personally hold Peter in the highest regard and value both his extensive industry experience and his frank advice. It is for this reason that I am delighted Peter will continue to play a vital role in the management of Telefónica as a member of the Comisión Delegada and Board.

Jaime Smith, who was appointed CEO of O2 Germany in June 2007, having previously led the integration and turnaround of TelefónicaÃ's businesses in the Czech Republic, will also become Chairman of the Supervisory Board of Telefónica O2 Czech Republic, an independent company that is 70 percent owned by Telefónica and listed on the Prague Stock Exchange. This position has been held to date by Peter Erskine.

A further statement, announcing the appointment of the new CEO of O2 UK, will be made in the coming weeks.

Posted to the site on 29th November 2007