BA Confirms held merger talks with Iberia
Friday, August 7, 2009 @ 2:29 PM
British Airways PLC (BAY.LN) and Spanish airline Iberia Lineas Aereas de Espana SA (IBLA.MC) this week held more talks in London about their planned merger, a spokesman for the U.K. flag carrier confirmed Friday.
Talks are due to continue, the spokesman added, signaling that no agreement had been reached. The two sides outlined the terms of a tie-up more than a year ago, but a final deal has snagged as the two companies have been unable to agree on the size of the stakes each would get in a combined entity.
Another contentious issue has been the size of BA's pension liabilities.
The confirmation from BA comes after Spanish local newspaper ABC reported Friday that Iberia executives including Chairman Antonio Vazquez and Chief Executive Rafael Sanchez Lozano would meet next week with BA representatives.
An Iberia spokeswoman couldn't immediately comment on the report.
Source: Wall Street Journal