Iberia, BA's IAG To Cap Non-EU Share Ownership At 40%
02 November 2010 - 1:18AM
Dow Jones News
International Consolidated Airlines Group SA, the company to be
created through the merger of British Airways PLC (BAY.LN) and
Iberia Lineas Aereas de Espana SA (IBLA.MC), will limit
non-European Union stock ownership to 40%, according to a
prospectus filed with Spanish regulators last week.
The foreign-ownership cap seeks to comply with operating
licenses and bilateral agreements for transatlantic flights granted
to flagship carriers of specific countries.
Iberia's strength lies in routes between Europe and South
America, while BA has a broader global network from its base at
London Heathrow, the world's largest airport by international
passenger numbers.
IAG, as the new company is also known, will be incorporated in
Madrid and have its operational and financial center in London. It
will be listed on the London and Madrid stock exchanges.
Madrid-based Iberia, Spain's largest airline by revenue, will
own 44% of IAG, with BA controlling the remaining 56%.
Shareholders of both companies are expected to vote on the
merger later this month, with IAG's shares expected to start
trading in January.
-By Ana Garcia, EFE Dow Jones; 34 91 395 8120;
djmadrid@dowjones.com