BA linked to Iberia takeover bid

Iberia is Europe's fourth largest airline

British Airways (BA) is reportedly set to join a group seeking to buy Spain's Iberia for 3.4bn euros (£2.3bn).

Associated Press, Reuters and the Financial Times quoted Spanish media reports as saying BA could announce its involvement in the bid on Tuesday.

BA, which has a 10% stake in Iberia and an option over another 30%, declined to comment on whether it may participate.

Private equity firm Texas Pacific made the bid last month and several Spanish investors have also been linked to it.

Reuters quoted BA chief executive Willie Walsh as telling a meeting in New York on Monday that the airline was in "the final stages of discussions" regarding Iberia.

"I expect to be in a position to announce a formal decision in relation to our participation in a consortium at some stage this week," he was quoted as saying.