Boards of British Airways and Iberia met separately in efforts to conclude talks of the $7 billion dollar merger that have lasted for more than one year.
For the deal, British Airways would own roughly 55% of the combined company thus creating a larger rival for Air France-KLM and Lufthansa. Iberia would hold the rest of the company.
During the meeting, the boards also discussed headquarter locations and who would run the new company’s business operations—two major issues that have been lengthening the discussions.
After the announcement, British Airways’ shares rose 7.6 percent and Iberia’s rose 12 percent. In the six months through the end of September, British Airways had a $359 million loss, compared with a loss of $81 million a year earlier. Iberia’s first-quarter loss widened to $138 million, from $827,050 a year earlier.
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