The Great Debate UK
Anglo-Spanish dealmaking has a chequered recent history — look no further than Ferrovial’s disastrous takeover of airports operator BAA. But this shouldn’t put British Airways and Iberia off fast tracking their planned tie-up to help stem losses.
Although Iberia is still making positive noises about the merger — despite giving a dire outlook for 2009 before predicting a return to profitability in 2010 — there have been dark mutterings in Madrid about any deal being postponed until September at the earliest.
Financial uncertainty, market volatility and a power struggle for control of Iberia’s biggest shareholder — Spanish savings bank Caja Madrid — are all cited as reasons for the apparent holding pattern.