British Airways is approaching private equity firms about making a consortium takeover bid for Iberia, according to media reports.“Any consortium bid would not involve further capital investment by British Airways,” the 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.

Shares in Iberia were higher in trading Monday on the back of the news.

Iberia has been the subject of intense merger or acquisition speculation since last month, when it received interest from US capital risk group Texas Pacific Group.

Lufthansa - while not ruling out interest for Iberia - said it sees the Spanish carrier as too expensive.

British Airways says it will not make a bid on its own for the Spanish flag carrier. BA already has a 10 percent stake in Iberia and 50 codeshare flights.
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