BA considers bid for Iberia
By Lina Saigol, European M&A Correspondent
Published: April 23 2007 07:58 | Last updated: April 23 2007 07:58
The race for consolidation in the airline industry intensified on Monday as British Airways said it had approached a number of private equity groups about a possible bid for Iberia, the Spanish flag carrier.
BA, which already holds 10 per cent of Iberia’s shares, has ruled out making a solo bid for Iberia. Instead, it is looking to form a consortium which could include one or more partners from Spain.
However, the UK group said it had not yet made a final decision about the future of its 10 per cent stake and was and was examining “numerous options including full disposal”.
Iberia has already attracted interest from private equity groups. Last month, Texas Pacific Group, the US buyout firm, made a €3.41bn ($4.6bn) non-binding offer to acquire Iberia.
However, Iberia said its board had requested information from TPG about which Spanish investors would take part in any bid, as it was concerned that an eventual takeover should maintain the Spanish nationality of the group in order to protect its international traffic rights.
It also requested information from TPG about the identity of an industrial partner in its consortium.
Apax Partners is also thought to be circling the Spanish airline.
BA is the third-biggest European airline after Air France-KLM and Lufthansa and jointly manages routes between Britain and Spain with Iberia.
Consolidation among European airlines has been precipitated by the so-called ”open skies” agreement struck between the European Union and the US earlier this month, which eliminates many restrictions on flights between the two regions. The agreement starts in 2008.
Copyright The Financial Times Limited 2007
By Lina Saigol, European M&A Correspondent
Published: April 23 2007 07:58 | Last updated: April 23 2007 07:58
The race for consolidation in the airline industry intensified on Monday as British Airways said it had approached a number of private equity groups about a possible bid for Iberia, the Spanish flag carrier.
BA, which already holds 10 per cent of Iberia’s shares, has ruled out making a solo bid for Iberia. Instead, it is looking to form a consortium which could include one or more partners from Spain.
However, the UK group said it had not yet made a final decision about the future of its 10 per cent stake and was and was examining “numerous options including full disposal”.
Iberia has already attracted interest from private equity groups. Last month, Texas Pacific Group, the US buyout firm, made a €3.41bn ($4.6bn) non-binding offer to acquire Iberia.
However, Iberia said its board had requested information from TPG about which Spanish investors would take part in any bid, as it was concerned that an eventual takeover should maintain the Spanish nationality of the group in order to protect its international traffic rights.
It also requested information from TPG about the identity of an industrial partner in its consortium.
Apax Partners is also thought to be circling the Spanish airline.
BA is the third-biggest European airline after Air France-KLM and Lufthansa and jointly manages routes between Britain and Spain with Iberia.
Consolidation among European airlines has been precipitated by the so-called ”open skies” agreement struck between the European Union and the US earlier this month, which eliminates many restrictions on flights between the two regions. The agreement starts in 2008.
Copyright The Financial Times Limited 2007