Oneworld carrier British Airways (BA) is retaining investment bank UBS to advise it on the future of its 10% stake in its Spanish alliance partner Iberia, with options including the disposal of its shareholding.
This morning Iberia revealed that it has been approached by investors connected with the US Texas Pacific Group (TPG), which is interested in acquiring all of the shares in the Spanish airline. The potential offer is set at €3.60 ($4.80) per share.
BA says: “In the light of Iberia’s announcement that it has received a bid approach, British Airways has decided to appoint UBS to advise on how to use British Airways’ 10% holding in Iberia in the best interests of British Airways shareholders.
“The advice will examine all options, including a disposal of British Airways’ holding.”
The two airlines have a commercial pact on routes between the UK and Spain. Late last year Iberia chief executive Fernando Conte stressed the importance of BA’s shareholding and the strong performance of their co-operation.
BA has been cited by the media as a possible bidder for an increased stake in Iberia, but BA chief executive Willie Walsh recently told ATI that the airline did not plan to increase its shareholding “at the moment”.
Source: FlightGlobal.com
