Published Date:
29 January 2009
MARKET CHATTER
BRITISH Airways and Spanish partner Iberia may walk away from merger talks – or seriously delay a deal – because of ever-widening disagreements over what the two carriers are worth, sources claimed yesterday.
BA had expected to call the shots when the long-term partners announced merger plans last July but, since then, its tumbling share price, a ballooning pension deficit and a profit warning this week have put Iberia firmly at the controls.
Shares in BA have lost nearly 45 per cent of their value since the pair unveiled the exclusive merger talks, while Iberia has risen about 11 per cent. Add in the pound's pummelling against the euro and Iberia has emerged the larger in terms of market capitalisation: 1.75 billion (£1.62bn) versus BA's £1.57bn.
The full article contains 136 words and appears in The Scotsman newspaper.
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Last Updated:
28 January 2009 8:40 PM
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Source:
The Scotsman
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Location:
Edinburgh
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Related Topics:
British Airways
