Wednesday, 8 December 2010

BA wins 99% shareholder approval for Iberia merger.


The £4.5bn tie-up will introduce Europe’s second largest airline under the name, International Airlines Group (IAG).  Plans for the collaboration began two years ago after both airlines suffered financial difficulties during the global economic crisis.

Antonio Vazquez, Iberia’s chairman said the joining of the companies would form a “historical agreement that will create a global group to lead a future consolidation process in the airline business.”

With more than 99 per cent of the vote from BA shareholders for the merge to go ahead, BA will own 56 per cent of IAG with Iberia taking control of the remaining 44 per cent.

BA said of the merger: “We have taken a big step toward our merger with Iberia. This will create a stronger business for the long-term benefit of our customers, our shareholders and our employees.”

It is expected the merger will be completed on 21 January with shares in the new company listing in both London and Madrid on 24 January. 

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