Iberia shareholders to vote on BA merger Nov 29

MADRID (BestGrowthStock) – Spanish carrier Iberia (IBLA.MC: ) said on Wednesday it had called a shareholders meeting for November 29 to vote on its planned merger with British Airways (BAY.L: ) to create the world’s third-largest airline.

The boards of BA and Iberia, with a combined market value of $9.43 billion, have already approved the merger to create the International Airlines Group carrier, and shares in both airlines are expected to stop trading on January 20, replaced by IAG shares, which will start trading on January 24.

Iberia and BA hope the merger will generate cost savings of 400 million euros ($558.2 million) from the sixth year after the deal, and position themselves for expected further consolidation in the global airline sector.

At 0952 GMT, BA shares were up 0.4 percent at 280.8 pence, compared with a slight fall in the FTSE 100 index, while Iberia shares were up 0.3 percent, broadly in line with a gain in Spain’s IBEX 35 index.

(Reporting by Jonathan Gleave and Robert Hetz; Editing by David Holmes)

($1=.7166 Euro)

Iberia shareholders to vote on BA merger Nov 29