BA says approaches private equity firms on Iberia

London, Apr 23: British Airways Plc has approached a number of private equity companies about making a consortium takeover bid for Spanish airline Iberia, BA said on Monday.

However, the airline said it had ruled out making an independent bid for the airline.

''Any consortium bid would not involve further capital investment by British Airways,'' Europe's third-biggest airline said in a statement.

''As well as a private equity partner, this consortium is likely to include one or more Spanish partners,'' BA added.

Private equity firm Texas Pacific Group (TPG) has already offered an indicative price of 3.60 euros a share for Iberia, valuing the Spanish carrier at around 3.4 billion euros (.6 billion).

European rules limit a U.S. firm like TPG from owning more than 49 percent of an EU airline. Under a new ''open skies'' pact between Washington and Brussels, the European Union would potentially have the power to cut that limit to 25 percent.

Germany's Lufthansa and BA -- which owns 10 percent of Iberia and has first refusal to buy another 32 percent -- have been named as possible rivals or partners for TPG.

Earlier this month, Iberia said it required more information from TPG. Iberia had said it wanted to know whether any Spanish companies were partnering TPG in its bid for the airline.

The head of Lufthansa in Spain told El Economista on Monday that if it did acquire Iberia, it would keep the flag carrier's Spanish identity.

BA said on Monday it had not made any final decision about its stake in Iberia and continued to examine numerous options, including a full disposal.

Shares in Iberia were up 1.3 percent at 4.01 euros in early trading while BA was down 0.1 percent at 513-1/2 pence, valuing the airline at around 5.9 billion pounds (.8 billion).

REUTERS