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British Airways' pension arrangements satisfy Iberia, merger to continue

23-Sep-2010 10:40 AM

Iberia notified (22-Sep-2010) the Spanish Securities Market Commission (CNMV) of its decision not to exercise its right to cancel the merger contract with British Airways in relation to the agreement reached between the latter and the trustees of its pension funds. This decision represents another step forward in the merger process, which will be completed when the Shareholders General Meeting takes place, expected in Nov-2010. British Airways’ employees' pensions deficit of GBP3.7 billion has been point of contention in the planned merger and gave Iberia an escape clause if it was unsatisfied with BA’s plans. In Jun-2010, BA announced a recovery plan to address the pension deficit setting aside at least GBP330 million p/a until 2026. [more]