The board of Iberia Lineas Aereas de Espana SA (IBLA.MC) didn't reach an expected agreement Thursday to approve a planned merger between the Spanish carrier and British Airways PLC (BAY.LN).

"There wasn't a decision today and the board will keep working on the plan," an Iberia spokeswoman said.

BA and Iberia signed a memorandum of understanding to merge in November and have said they would approve the deal in the first quarter of this year.

The merger talks began in July 2008 and last year's memorandum of understanding set out that BA shareholders will take 55% of a new joint company and Iberia shareholders will take the remaining 45%.

Company Web site: www.iberia.com

-By Jason Sinclair, Dow Jones Newswires; 34 91 395 8127; jason.sinclair@dowjones.com