Iberia to study Gala takeover approach

14 December 2007

MADRID – Iberia will examine the takeover approach by a group of Spanish investors led by Gala Capital at its next board meeting on 20 December, the airline’s leading shareholder, local savings bank Caja Madrid, said yesterday.

Gala has made a tentative offer priced at between EUR 3.60 and EUR 3.90 per share. Iberia’s share price closed yesterday down 0.64 percent at EUR 3.11.

Caja Madrid recently increased its stake in the airline to 23.3 percent after acquiring the interests of Spanish bank BBVA and logistics firm Logista at EUR 3.60 per share.

German daily Frankfurter Allgemeine Zeitung yesterday quoted Lufthansa CEO Wolfgang Mayrhuber as saying the German carrier is still interested in Iberia, but insisted that at EUR 3.60 per share the airline is too expensive.

At an event to celebrate Iberia’s 80th anniversary, Caja Madrid Chairman Miguel Blesa said: “Iberia isn’t expensive at that price. We also bought at that price.”

Blesa also welcomed the presence of British Airways in Iberia. BA, which holds a 10-percent stake, dropped plans for a joint bid for Iberia.

Subject: Spanish news