IAG formally begins tender offer for Vueling

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International Airlines Group (IAG), the parent of British Airways and Iberia, has asked Spain's National Securities Market Commission to authorise its proposed acquisition of Vueling Airlines.

Acting through a fully-owned company called Veloz Holdco, the group plans to acquire 16.2 million shares in Barcelona-based Vueling, amounting to 54.14% of the Spanish carrier's total capital. The remaining stake is already owned by Iberia.

Banco Santander has agreed to guarantee €113.4 million ($147 million) to cover the cost of the transaction - equivalent to €7 per share targeted - IAG says in a statement.