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’Snap news
Breaking pre-market news on Thursday;
- Frank Timis’ African Minerals says Tonkolili investment deal delayed – statement.
- Songbird Estates, owner of Canary Wharf, announces plans to raise £140m via equity issue — statement.
Snap news
Breaking pre-market news on Friday,
- Spain’s Iberia reports H1 op loss of €72m – statement.
- Dana Petroleum sees production reaching 51,000 boepd by end 2010 – statement.
- Independent News and Media H1 operating profit up 29 per cent – statement.
Snap news
Breaking pre-market news on Thursday,
- BA, Iberia sign long-awaited merger agreement – statement.
- M&S Q4 sales growth tops forecasts – statement.
- Spain’s Banesto reports €211.5m Q1 net profit – Reuters.
In pension trustees BA trusts
There’s a pretty big `if’ hovering over British Airways’ proposed merger with Iberia:
Iberia will be entitled to terminate the merger agreement if the outcome of the discussions between British Airways and its pension trustees is not,
Snap news
Breaking pre-market news on Friday,
- Graham Chipchase to succeed Leslie Van de Walle as Rexam chief executive – statement.
- Grupo Ferrovial says it will inject £500m equity injection into its London airports group – statement.
BA and Iberia agree merger
British Airways and Iberia on Thursday night agreed the terms of a merger – first announced in July 2008 – to create Europe’s third-largest airline by revenue, resolving a key obstacle by agreeing that Iberia can terminate the accord if it is unhappy with BA’s handling of its swollen pension scheme.
BA/Iberia proposed merger terms announced
Here are the key details of the memorandum of understanding for a proposed “merger of equals” between BA and Iberia. And, my, does it look complex.
A new holding company (TopCo) will be created that will own both the existing airlines.
Is the BA-Iberia merger imminent? – update
Shares in British Airways were up 10 per cent on Thursday afternoon amid expectations that the troubled carrier’s long-planned merger with Spain’s Iberia is finally about to happen.
But earlier in the London day there had been a lot of conflicting newsflow.
British Airways defies financial gravity
Hidden away in British Airways’ half-year results is this tidbit:
That means British Airways NAPS pension liabilities now stand at a whopping £2.66bn — more than twice the £1.17bn reported at the end of last fiscal year.
British Airways and Iberia, a credit update
The possible merger between British Airways and Iberia has been the basis for many analysts’ “buy” or “hold” recommendations on the UK carrier.
Not so the credit agencies. This from Standard & Poor’s.
Iberia dispels doubts over BA deal
The head of Iberia’s largest shareholder sought Monday to dispel doubts about the Spanish flag-carrier’s proposed merger with British Airways, saying an agreement between the two was “close”. However,
British Airways’ pension puff
While we’re on the subject of airports, here’s a a little tidbit on British Airways’ pension deficit, sourced from a 52-page note by Citi’s airline analyst, Andrew Light:
… BA had total pension assets of £12.3bn (of which roughly £5 billion in equities) and pension liabilities of £14.0bn as of end March to give an actuarial combined deficit of £1.7bn as at last March.
Iberia gives BA merger ultimatum
British Airways must choose between Qantas or Iberia as its future merger partner, the chief executive of the Spanish carrier said Wednesday, adding it would be “too complex” to pursue both deals. Iberia’s Fernando Conte said he was to meet Willie Walsh,
Lex on airline mergers
It is wise if you’re heading into air turbulence to have a parachute, notes Lex, and British Airways “has three tucked under its seat”: ongoing merger talks with Iberia, a potential tie-up with American Airlines,
BA and Iberia in merger talks
British Airways and Spain’s Iberia on Tuesday said they were in talks on a merger that would create Europe’s third-biggest airline in the latest example of restructuring in the troubled global aviation industry.
American, Iberia and BA plan JV
American Airlines, British Airways and Spain’s Iberia are close to applying for antitrust immunity to form a joint venture that would be one of the most powerful forces in the transatlantic aviation market.
TPG, BA, bow to Caja Madrid on Iberia
TPG, the US private equity group, and British Airways were expected on Monday to abandon their plan to mount a takeover bid for Spain’s Iberia, the fourth-largest European airline. The five-member consortium led by TPG and BA was expected to withdraw after a hostile response to its proposed bid from Caja Madrid,
Pain in Spain for BA and TPG
The Spanish have closed ranks – and squeezed British Airways out.
The British airline, who had teamed up with TPG to present a €3.4bn offer for Iberia, on Monday confirmed that it would not be contesting moves by Caja Madrid,
Caja Madrid tightens grip on Iberia
Shares in Spanish airline Iberia slid 5% to €3.26 as bid hopes were dashed when savings bank Caja Madrid moved to build its stake in the airline to 23.4%, potentially blocking a foreign takeover. Caja Madrid,
Gala Capital enters Iberia bid arena
Iberia, the Spanish airline being courted by a consortium led by British Airways and TPG, the private equity firm, on Thursday confirmed it had received a rival approach from a group of Spanish investors.
BA and TPG poised to secure Iberia funding
British Airways and TPG are near to securing funding for their joint €3.4 billion bid for Iberia, the Spanish airline, despite continuing turmoil in the debt markets, reports the Times. The consortium is in the final stages of agreeing an underwritten loan from Citigroup,
Air France-KLM eye merger deals
Air France-KLM, the European airline, is studying potential merger moves with either Alitalia or Iberia. Jean-Cyril Spinetta, chairman and chief executive, who led the KLM takeover in 2003, told the FT the “consolidation process is not finished – there will be other steps”.
Iberia shares soar on takeover talk
Shares in Iberia, the Spanish airline, rose 2.5 per cent to €3.30 on Thursday on speculation that private equity group TPG and British Airways were poised to launch an offer following reports the partnership were wrapping up due diligence on Iberia’s accounts.
Apax in talks with Air France on Iberia
Apax Partners, the UK private equity group, is in talks with Air France about a possible bid for Spain’s Iberia, Europe’s fourth-largest airline. A rival group led by TPG and British Airways has already made an indicative offer valuing Iberia at €3.4bn ($4.7bn).
Apax sells one Spanish airline to buy another?
Goldman Sachs placed Apax’s entire 20.97% stake – or 3,135,284 shares – in Spanish low-cost carrier Vueling on Wednesday, according to a statement made to the stock exchange.
What could its motive be?
Iberia of course.
More private equity checks in for Iberia
As if the cohorts of private equity already lined up for Iberia weren’t enough, a report from Spanish state news agency EFE says a pair of new suitors has emerged [via Invertia.es]. A Swiss and a new British private equity firm have both joined the fun,
Apax taps Lufthansa/Air France for Iberia bid
Just as BA and TPG confirm their offer for Iberia on Friday, so reports appear that Apax Partners is doing its utmost not to be left out of the party. The Daily Telegraph reports that the British private equity firm is in talks with Air France-KLM as well as Lufthansa about cobbling together a £2.3bn move for the Spanish carrier.
British Airways confirms Iberia consortium
The face of the airline industry is changing and in its own inimitable style, British Airways issued a statement on Tuesday, compressing pages of potential analysis and insight into three short sentences:
BA and friends set to swoop on Iberia
British Airways may publish details of a consortium play for Iberia on Friday, according to a report from Spanish newspaper Expansion. The grouping would include TPG and Apax Partners along with their partners Vista,