UPDATE: Iberia Chairman Conte Steps Down As BA Merger Talks Drag
09 July 2009 - 10:39PM
Dow Jones News
Iberia Lineas Aereas de Espana SA (IBLA.MC) Thursday said
Chairman and Chief Executive Fernando Conte had resigned, after
months of protracted and unsuccessful merger talks with peer
British Airways PLC (BAY.LN).
Conte was leaving the company for personal reasons, Iberia said
in a statement. A spokesman added Conte had planned to retire at
age 60 after seven years at the helm of Spain's flagship
carrier.
The management shakeup comes after months of tie-up talks
between Iberia and British Airways that began last summer.
The Iberia spokesman said Conte's departure wasn't related to
the British Airways merger plans, adding that talks between the two
companies continued.
"This has been a very carefully thought-out decision ... which I
did not want to make until my successor had been decided," Conte
was quoted as saying in a press release.
Antonio Vazquez, a former Iberia board member and former chief
executive of Spanish tobacco company Altadis, will replace Conte as
chairman and chief executive.
Conte and Vazquez couldn't be reached for comment
immediately.
As CEO of Altadis, Vazquez negotiated the sale of the company to
Imperial Tobacco Group PLC (IMT.LN) for EUR12.6 billion. At
Altadis, he also helped negotiate a joint venture with the Cuban
government to sell cigars internationally, including emblematic
brands such as Cohiba and Montecristo.
Iberia added that Rafael Sanchez-Lozano will be the company's
new chief operating officer.
Spanish savings bank Caja Madrid is Iberia's top shareholder,
with a 23% stake. Iberia shares have lost about 54% of their value
since late 2007, when Caja Madrid increased its ownership to fend
off an unsolicited bid from a group of private-equity firms and
BA.
Last month, Caja Madrid Chairman Miguel Blesa said he hoped the
two carriers could reach agreement about the merger before summer,
but added little progress had been made in recent months.
Analysts say BA's pension deficit of more than GBP1.7 billion
remains as a key hurdle in merger negotiations. Iberia has no debt
and roughly EUR2 billion in cash.
Company Web site: www.iberia.com
-By Jason Sinclair, Dow Jones Newswires; 34 91 395 8127;
jason.sinclair@dowjones.com