Iberia Shareholders To Vote On BA Merger

October 27, 2010

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Spanish carrier Iberia said on Wednesday it had called a shareholders meeting for November 29 to vote on its planned merger with British Airways to create the world's third-largest airline.

The boards of BA and Iberia, with a combined market value of USD$9.43 billion, have already approved the merger to create the International Airlines Group, 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 EUR€400 million (USD$558.2 million) from the sixth year after the deal, and position themselves for expected further consolidation in the global airline sector.

(Reuters)