British Airways’ shares are soaring – up 7% at the moment – as the airline confirmed its board is meeting today to consider a merger with Spain’s Iberia.
At the same time Iberia is holding a separate meeting, prompting speculation that a deal is imminent after months of negotiation. BA pointed out that “no decisions have been taken” and that “there can be no guarantee that a transaction will be forthcoming.”
However that has not stopped investors pushing up BA’s shares 13.4p to 213.4p, making it the biggest riser in the FTSE 100.
Spanish reports suggest that Iberia has approved the merger, and agreed it will hold 45% of the merged company, with BA having 55%.
Analysts have long said that a merger – and a link up with American Airlines if anti-trust issues are overcome – is the best way forward for BA as it tries to emerge from the current turmoil surrounding the airline industry.
