BA increases Iberia stake to 13.15%

Published: 25 Mar 2008

British Airways is reportedly in talks with the major shareholder of Iberia and has not ruled out making a bid for the carrier.

As per the information available, BA chief executive Willie Walsh confirmed talks have taken pace with Caja Madrid, the investment bank with a 23% shareholding in Iberia. BA is hoping closer ties with the carrier will open up access to South America and the lucrative Latin American market.

Last week BA took its shareholding in Iberia to 13.15% after buying a further 3% holding in the carrier for £52 million.

The move to take another 3% in Iberia came only months after BA pulled out of making a full takeover move for the company, raising questions about its intentions.

"This purchase reflects the strategic importance we attach to our relationship with Iberia and our continued confidence in its management," said BA chief executive Willie Walsh in a statement announcing that BA's stake had increased to 13.15 percent.

Comments

Kilgore said on 25 Mar 08:

It's interesting that British Airways is investing in a Spanish airline while a Spanish company owns and operates Heathrow and a half-dozen other airports in the UK. Don't know what to make of that, if anything.

As for British Airways hoping to get into the "lucrative Latin American market", there will be some serious competition. In Mexico and elsewhere the low cost carriers are popping up like mushrooms after a rain -- so much so that Latin America could be the next Southeast Asia for the legacy airlines.

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