British Airways has joined a consortium led by Texas Pacific Group to make a bid for Iberia in order to protect its own stake. British Airways is the biggest shareholder in the airline, Iberia LÍneas Aéreas de España, with a 10 percent stake.
A British Airways statement confirmed that after ‘intense’ talks, although they have agreed to join the consortium, which also includes other Spanish private equity firms, however, there is no guarantee that any formal bid will be made for the Spanish airline. Texas Pacific Group had previously stated that it was considering a bid for Iberia for €3.4 billion, or $4.6 billion, as airlines prepared for the "open skies" accord between the United States and the European Union.
This news comes shortly after Iberia sought clarification from BA on its position towards the Madrid based airline, after CEO Willie Walsh’s comments ruling out “making an independent bid”.
British Airways manages flights between Britain and Spain with Iberia, which also has a Latin American network. Iberia has 225 planes and flies to destinations like Buenos Aires, Rio de Janeiro and Miami. First-quarter profits of €12.2 million were reported, compared to a €45 million loss a year earlier because of long-distance route growth.
