BA, Iberia boards consider merger
LONDON/MADRID (Reuters) – The boards of British Airways <BAY.L> and Spain’s Iberia <IBLA.MC> are holding separate board meetings to consider a merger to create the world’s third largest airline by revenue, they said on Thursday.
“Further to recent market speculation, British Airways confirms that the British Airways and Iberia Boards are holding separate meetings today, 12 November, to consider a potential transaction,” BA said in a statement.
“However, no decisions have been taken and, at this time, there can be no guarantee that a transaction will be forthcoming. A further announcement will be made in due course, if appropriate.”
Iberia also said it had taken no decision on the potential deal and there was no guarantee a transaction would take place.
Spanish banks to double property provisions -source
MADRID, Oct 26 (Reuters) – Spanish banks will have to double provisions for property taken onto their books as payment of a debt under a new rule set to be implemented by the Bank of Spain, a banking sector source said on Monday.
Banks will have to provision 20 percent of the value of apartments or other real estate for at least a year, the source said, asking not to be named.
The requirement could force banks to boost provisions by 4 billion euros, money which would otherwise have been posted as profits, according to one analyst, who expects unlisted savings banks with links to regional governments to be hardest hit.
In the worst cases it could lead to impairments of up to 6 percent of a bank’s market capitilisation, Portuguese bank BPI said in a research note.
Spain banks to double property provisions -source
MADRID, Oct 26 (Reuters) – Spanish banks will have to double provisions for property taken onto their books as payment of a debt under a new rule set to be implemented by the Bank of Spain, a banking sector source said on Monday.
Banks will have to provision 20 percent of the value of apartments or other real estate for at least a year, the source said, asking not to be named.
The requirement could force banks to boost provisions by 4 billion euros, money which would otherwise have been posted as profits, according to one analyst, who expects unlisted savings banks with links to regional governments to be hardest hit.
In the worst cases it could lead to impairments of up to 6 percent of a bank’s market capitilisation, Portuguese bank BPI said in a research note.
