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| Version 2 | Version 3 |
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| BA and Iberia hold merger talks | BA and Iberia hold merger talks |
| (40 minutes later) | |
| British Airways (BA) has said that it and Spanish airline Iberia are holding separate board meetings later to discuss some form of merger. | British Airways (BA) has said that it and Spanish airline Iberia are holding separate board meetings later to discuss some form of merger. |
| BA said in a statement that the meetings would consider a "potential transaction" between the two sides. | BA said in a statement that the meetings would consider a "potential transaction" between the two sides. |
| However, it added that no decisions had been taken and there could be no guarantee a deal would take place. | However, it added that no decisions had been taken and there could be no guarantee a deal would take place. |
| For its part, Iberia said the deal under discussion would give it 45% and BA 55% of a new merged company. | For its part, Iberia said the deal under discussion would give it 45% and BA 55% of a new merged company. |
| The firms have considered a tie-up for a number of years, holding talks on the issue in July 2008. | The firms have considered a tie-up for a number of years, holding talks on the issue in July 2008. |
| BA chief executive Willie Walsh has previously said that a merger would help both firms in the current economic climate. | BA chief executive Willie Walsh has previously said that a merger would help both firms in the current economic climate. |
| Co-operation | Co-operation |
| In its statement, BA said that a further announcement would be made "in due course, if appropriate". | In its statement, BA said that a further announcement would be made "in due course, if appropriate". |
| Iberia said no decision had been taken and there was "no guarantee that a deal will be reached". | Iberia said no decision had been taken and there was "no guarantee that a deal will be reached". |
| Shares in BA were up 15.5 pence, or 7.75%, at 215.5p following its announcement, making it the biggest climber on the UK's main share index, the FTSE 100. | Shares in BA were up 15.5 pence, or 7.75%, at 215.5p following its announcement, making it the biggest climber on the UK's main share index, the FTSE 100. |
| BA already owns 13.5% of Iberia, and the two carriers have a code-sharing agreement under the One World grouping of airlines, which allows them to sell seats on each other's services. | BA already owns 13.5% of Iberia, and the two carriers have a code-sharing agreement under the One World grouping of airlines, which allows them to sell seats on each other's services. |
| If a merger is announced, it would still require regulatory approval from the European Commission. | If a merger is announced, it would still require regulatory approval from the European Commission. |
| However, analysts say a deal is likely to be cleared, pointing to Air France's successful merger with Dutch airline KLM in 2004. | However, analysts say a deal is likely to be cleared, pointing to Air France's successful merger with Dutch airline KLM in 2004. |
| BA's announcement comes a week after it said it would cut a further 1,200 jobs, as it reported a first-half loss for the first time. It made a pre-tax loss of £292m in the six months to the end of September. | BA's announcement comes a week after it said it would cut a further 1,200 jobs, as it reported a first-half loss for the first time. It made a pre-tax loss of £292m in the six months to the end of September. |
| Iberia's most recent results showed that it made a loss of 72.8m euros ($109m; £66m) between April and June. | Iberia's most recent results showed that it made a loss of 72.8m euros ($109m; £66m) between April and June. |