BA close to securing stake in Iberia

THE POSSESSIVE fingers of British Airways are near to closing on another new buy - with a 10% stake in Spanish carrier Iberia for it and airline partner American Airlines nearly in its clutches.
An announcement in Europe last week by Iberia chairman Xabier de Irala suggested that negotiations on the price of the 5% stake for each of the buyers were nearing completion.
This is part of Iberia's plans to be fully privatised by the first quarter of next year. The BA/AA shares will join the 10% holding already owned by Iberia employees - with the remaining shareholdings intended for domestic Spanish institutions (30% expected to be sold before the end of this year), and 50% to be offered to the open market by year-end.
The privatisation scheme follows a three-year rationalisation plan at Iberia, which came close to bankruptcy in 1995.