Former Iberia execs launch bid for Spanish airline

9 October 2007

MADRID – AFP – Several former executives of Spanish flag carrier Iberia are preparing a takeover bid for the airline, in which both British Airways and Air France have shown interest, a Spanish newspaper said Tuesday.

At around 10:00am (0800 GMT) Iberia shares on Madrid’s stock exchange were up 0.87 percent at 3.47 euros in a market that had risen 0.17 percent.

The daily Cinco Dias newspaper, quoting sources close to the former executives, said they are in contact with investors and administrators in order to keep Iberia independent.

Several of the former board members have links to former Socialist government of Felipe Gonzalez, in power from 1982 to 1996.

Among them is a former Iberia chairman, Javier Salas. The newspaper said he had declined to comment on the report, saying “now is not the time.”

Iberia has been looking for a partner since March.

British Airways, in alliance with investment fund Texas Pacific Group, has shown interest. They have not made a firm offer, but have suggested a price of 3.6 euros per share, valuing the group at 3.4 billion euros (4.8 billion dollars).

Air France-KLM has said it is also considering a bid.

[Copyright Expatica]

Subject: Spanish news