British Airways joins consortium bid for Iberia

22nd May 2007, Comments 0 comments

22 May 2007, MADRID - British Airways PLC has agreed to join a consortium led by U.S. private equity firm TPG Capital LLP making a bid for Spanish airline Iberia SA, Spanish news reports said.

22 May 2007

MADRID - British Airways PLC has agreed to join a consortium led by U.S. private equity firm TPG Capital LLP making a bid for Spanish airline Iberia SA, Spanish news reports said.

Quoting sources close to the deal, the national news agency Efe reported that the consortium would include Spanish funds Vista Capital Ibersuizas and Quercus Equity.

British Airways' position is pivotal to a buyout of Iberia because it has a 10 percent stake in the company and the right of first refusal over offers for a further 30 percent of Iberia.

The company has said it will not make an independent bid for Iberia but had not ruled out joining a consortium. It has said it will not make a further capital investment as part of any consortium offer.

TPG Capital LLP, formerly known as the Texas Pacific Group, already made a ?3.41 billion (US$ 4.59 billion) preliminary offer for Iberia at the end of March and subsequently signed up Spanish partners Vista Capital and Inversiones Ibersuizas to its consortium.

Both British Airways and Iberia declined to comment. Iberia said it expects to make further announcements Thursday after its board meeting.

Iberia stock closed up 0.5 percent at EUR 3.92 (US$ 5.27) in Madrid trading.

Spanish investors will own at least 51 percent of Iberia's capital, Efe said.

[Copyright AP with Expatica]

Subject: Spanish news

 

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