BA-Iberia merger to become effective 21 Jan 2011

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Oneworld alliance carriers British Airways and Iberia are expecting their merger to become effective on 21 January 2011.

BA has today set out a timetable of proceedings for their planned combination in a 356-page document for its shareholders.

Both BA and Iberia will hold crucial general meetings on 29 November to secure shareholder approval for the tie-up.

Prior to the merger BA must obtain approval for its ownership to be transferred to a holding company, BA Holdco, which will then hold just over 90% of BA while the Iberia Opco will have the remainder.

BA chairman Martin Broughton says: "A vote for [this transfer] is a vote in favour of the implementation of the merger."

Securing this step will clear the way to the full International Consolidated Airlines Group merger, under which Iberia and BA Holdco will be combined under a single holding company.

BA states that it expects the merger then to become effective on 21 January 2011. The shareholding of the combined entity would be split 56% in favour of BA and 44% in favour of Iberia.

Trading in ordinary BA shares would be suspended on this date while admission of the International Consolidated Airlines Group shares to the UK and Spanish stock exchanges would take place on 24 January.