Iberia and British Airways expect merger to be completed on 21-Jan-2011
Iberia stated (26-Oct-2010) it expects its merger with British Airways, which would create Europe's second largest airline by market value after Lufthansa, to be completed on 21-Jan-2011 subject to shareholder approval. Iberia has called an Extraordinary Shareholders Assembly for 28-Nov-2010 to vote on the planned merger while British Airways shareholders are scheduled to vote on the issue on 29-Nov-2010. The Boards of the two carriers, which have a combined market value of USD9.43 billion, have already approved to the merger which would create the International Airlines Group carrier. The airlines signed the merger agreement on 08-Apr-2010. The European Commission cleared the agreement in Jul-2010. Shares in both airlines are expected to stop trading on 20-Jan-2010 to be replaced by IAG shares which will commence trading on 24-Jan-2011. The two carriers expect the merger to generate cost saving of EUR400 million from the sixth year of the agreement with the new group to position itself for expected further consolidation in the global airline sector. Under the plan, British Airways will become an operating subsidiary of IAG with CFO Keith Williams assuming the role of CEO from Willie Walsh who will become CEO of IAG. Martin Broughton will continue as Chairman of British Airways while Iberia Chairman Antonio Vazquez will become Group Chairman. Mr Walsh will have a salary of GBP825,000 p/a as Chairman, a 22% increase from his current salary, with bonuses on top of this figure. Mr Vazquez will have a basic pay of GBP625,000 p/a compared to EUR337,000 (GBP294,000) at present while Mr Williams will witness a 56% increase in annual salary to GBP630,000. Iberia CEO Rafael Sanchez-Lozano Turmowill have a basic pay of EUR632,000. The two airlines issued documentation ahead of shareholders in advance of the meetings. A registration document for International Consolidated Airlines Group (IAG), the holding company of the new combined group, was also published. [more - Iberia Registration Document] [more - Shareholder Meeting Announcement] [more - Filing of Registration Document] [more - British Airways Merger and Shareholder Meeting Documents]