(BAY.L) British Airways PLC Buy/Sell

MADRID, Nov 20 (Reuters) - Unions representing Spanish airline Iberia's cabin crew will call off strikes planned for November and December after reaching a wage agreement with management, a union spokesman said on Friday.
"Once the (wage) agreement has been signed the strike will be officially called off," said a spokesman from Sitcpla, one of the two unions which called for strike action.
The unions already carried out strikes in October and November and another 8 days of stoppages were planned between the end of November and the middle of December.
But, on Thursday, Iberia said it had agreed an average 4 percent salary rise in 2009 for its nearly 4,000 cabin crew.
At 1118 GMT, Iberia shares were up 0.5 percent to 2.03 euros, outperforming the blue-chip IBEX-35 index which was flat.
On Nov. 12, Iberia and British Airways said they had reached a preliminary merger agreement.

(Reporting by Robert Hetz; Writing by Judy MacInnes; Editing by Dan Lalor) Keywords: IBERIA/STRIKE (judith.macinnes@thomsonreuters.com; 34 91 585 8340; Reuters Messaging: judith.macinnes.reuters.com@reuters.net)

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MADRID, Nov 20 (Reuters) - The following Spanish stocks may be affected by newspaper reports and other factors on Friday. Reuters has not verified the newspaper reports, and cannot vouch for their accuracy:

British Airways pension fund members are calling for a new fund director to replace Roger Maynard, who they claim has conflicting interests as he also sits on the board of the airline, Expansion reported citing Dayne Markham, chairman of the BA pensioners association.

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Nov 18 (Reuters) - :

RNS Number : 7092C British Airways PLC 18 November 2009

TR-1: NOTIFICATION OF MAJOR INTEREST IN SHARES

1. Identity of the issuer or the underlying issuer of British Airways plc

existing shares to which voting rights are attached:

2 Reason for the notification (please tick the appropriate box or boxes):

An acquisition or disposal of voting rights An acquisition or disposal of qualifying financial instruments which may result in the acquisition of shares already issued to which voting rights are attached
Yes

An acquisition or disposal of instruments with similar economic effect to qualifying financial instruments An event changing the breakdown of voting rights

Other (please specify):

3. Full name of person(s) subject to the notification UBS Investment Bank

obligation:

4. Full name of shareholder(s) (if different from 3.): UBS AG London Branch
5. Date of the transaction and date on which the 16 November 2009

threshold is crossed or reached:

6. Date on which issuer notified: 18 November 2009
7. Threshold(s) that is/are crossed or reached: 3%

8. Notified details: A: Voting rights attached to shares

Class/type of Situation previous Resulting situation after the triggering transaction
shares to the triggering
transaction

if possible using the ISIN CODE
Number Number Number Number of voting % of voting
of of of shares rights rights
Shares Voting
Rights
Direct Direct Indirect Direct Indirect
Ord 25p No Previous No Previous 29,289,660 29,289,660 2.54%
Disclosure Disclosure

B: Qualifying Financial Instruments Resulting situation after the triggering transaction

Type of financial Expiration Exercise/ Number of voting % of voting
instrument date Conversion rights that may be rights
Period acquired if the
instrument is
exercised/
converted.

C: Financial Instruments with similar economic effect to Qualifying Financial Instruments Resulting situation after the triggering transaction

Type of financial Exercise Expiration Exercise/ Number of voting % of voting rights
instrument price date Conversion rights instrument
period refers to
Converts (XS0440057783) 529.101 13 August 2014 5 years 14,285,727 Nominal Delta
1.24%

Total (A+B+C)

Number of voting rights Percentage of voting rights
43,575,387 3.78%

9. Chain of controlled undertakings through which the voting rights and/or the financial instruments are effectively held, if applicable:

Proxy Voting:

10. Name of the proxy holder: N/A
11. Number of voting rights proxy holder will cease to hold: N/A

12. Date on which proxy holder will cease to hold voting rights: N/A

13. Additional information:

14. Contact name: Alexa Koenig/Nemanja Pantic

15. Contact telephone number:

---------------------------------

Alan Buchanan

Company Secretary

British Airways Plc

020 8738 5119

This information is provided by RNS The company news service from the London Stock Exchange

HOLBPBITMMTBBTL

LONDON, Nov 16 (Reuters) - Top European firms are underestimating their pension obligations by 300 billion euros ($449 billion), led by British lenders Royal Bank of Scotland and Lloyds Banking Group, according to a study. Lloyds has underestimated its obligations by 14.2 billion euros, more than any other European company, followed by RBS, which has unrecognised liabilities of 13.3 billion euros, according to calculations by equity research firm AlphaValue.
Lloyds and RBS are, respectively, 43 percent- and 70 percent-owned by the state after receiving taxpayer-funded bailouts during last year's banking crisis.
The third-biggest underestimation is at British Airways , currently in the process of merging with Spanish rival Iberia, AlphaValue said.
The size of BA's pension deficit, currently being reviewed by the airline and its retirement fund trustees, could yet derail the tie-up between the two carriers, with Iberia reserving the right to back out if the shortfall is bigger than expected.
According to AlphaValue, the British carrier's true pensions obligation is 10.5 billion euros higher than the company's own estimate.
AlphaValue said many companies had underestimated their true pension obligations by assuming a low level of wage inflation, and by adopting a high discount rate in calculating the present value of future payouts.
The combined pensions deficit of 430 major listed European firms rose 22 percent to 280 billion euros last year, according to the companies' own calculations, AlphaValue said.
That left an additional unacknowledged pension obligation of 300 billion euros, equivalent to 9 percent of the shareholders' equity in the companies, it added.

($1=.6685 Euro)

(Reporting by Myles Neligan; editing by Simon Jessop) Keywords: PENSIONS/ (myles.neligan@reuters.com; +44 207 542 13 73)

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LONDON, Nov 16 (Reuters) - British Airways faces a strike ballot among cabin crew over proposed changes to working practices, just days after it announced a merger deal with Spanish carrier Iberia.
Trade union Unite said on Monday it was issuing ballot papers to its 12,000-plus members of BA's 14,000-strong cabin crew workforce.
"We ask British Airways to signal that they are willing to abandon their plans to impose change and work with us on a way forward, one which delivers for passengers, shareholders and the workforce," Brian Boyd, Unite national officer for aviation, said in a statement.
The ballot will close on Dec. 14.
BA and Iberia agreed on Thursday to create a group with a combined market value of $7 billion as they try to battle the worst industry downturn in decades.
BA's pension deficit was a big stumbling block during 16 months of talks and Iberia has reserved the right to back out of the deal if the agreed funding hole turns out to be bigger than expected. Analysts have forecast a deficit of around 3 billion pounds ($5 billion).

($1=0.6017 pounds)

(Reporting by Mark Potter; Editing by Greg Mahlich) Keywords: BRITISHAIRWAYS/BALLOT (mark.r.potter@thomsonreuters.com; +44 20 7542-2943; Reuters Messaging: mark.potter.reuters.com@reuters.net)

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The Times

KING IS FACING BATTLE ON TWO FRONTS AS RIVALS LURE SHOPPERS

FROM SAINSBURY'S

J Sainsbury has seen over 11 million pounds of spending move to competitors in the 12 weeks to November according to confidential industry "switching" data. Four million pounds switched to Waitrose, with 2.5 million pounds going to Aldi and two million pounds to Tesco. The figures mean that chief executive Justin King is losing money both to upmarket competitors and more value-focused rivals. A spokesman for Sainsbury's said the supermarket continued to grow its market share.

BAKER AIMS AT MATALAN

Former Boots chief executive Richard Baker looks set to lead a 1.5 billion pound private equity bid for Matalan by Poundland owner Advent International. John Hargreaves, Matalan's owner, put the retailer on the market last month. Private equity funds including TPG and CVC are said to be interested.

VIRGIN MEDIA HITS THE PAUSE BUTTON ON SALE OF CHANNELS

Virgin Media has shelved its plan to sell its wholly-owned VMTV television channels as it considers other options to raise cash. The channels, worth 160 million pounds, include Living, Bravo and Trouble. Virgin is now considering offloading its channels in a package alongside its 300 million pound half-share in UKTV. Previously, the bidders for the VTMV channels had been narrowed down to Viacom, Time Warner and BSkyB, and Virgin is now asking these companies whether they want to buy UKTV as well. UKTV has been the most successful multichannel broadcaster in the sector recently.

The Daily Telegraph

CAZENOVE PARTNERS IN LINE FOR WINDFALL

JP Morgan is close to agreeing the one billion pound acquisition of The Queen's stockbroker Cazenove. Under the terms of the tie-up between the two five years ago, the American investment bank has until February 2010 to exercise an option to buy the remaining 50 percent of its investment banking partner. The 950 million pound windfall will be shared out amongst Cazenove's 15,000 shareholders, mostly comprised of current and former employees.

GRAND DESIGNS FOR GROWTH

Fashion retailer New Look is has announced expansion plans which include doubling its size over the medium term and opening a further 670 overseas stores. The private equity owned business is also considering an initial public offering next year and is currently being advised by Lazard. Chief executive Carl McPhail described an IPO as "one of a number of options" and Lazard is understood to also be looking at a trade sale or a sale to new private equity owners.

CADBURY BOSS BLASTS 'DERISORY' KRAFT BID

In an interview with the Sunday Telegraph, Cadbury chairman Roger Carr has blasted Kraft's hostile approach for the confectionary firm, describing it as "a derisory offer from a company that sees Cadbury as a strategic solution to fill the gaping hole of growth in their business model." Kraft's cash and shares bid values the company at 718 pence a share -- 58 pence below Friday's trading price. It is thought that an offer of around 900 pence a share would be needed to gain the acceptance of the board and shareholders

.

The Independent

ROYAL MAIL FACES THREAT OF VAT CHARGES ON BUSINESS CONTRACTS

HM Revenue & Customs has informed the Royal Mail that it will soon be required to charge VAT on its services. The group had previously been exempt from this and the news is seen as a further challenge to its ability to compete with private sector rivals. HMRC's announcement follows a recent ruling in the European Court of Justice after a case was brought by Royal Mail's rival TNT.

SUPERDRY SET FOR FLOTATION IN THE FIRST HALF OF 2010

Retailer Supergroup is planning to float on the FTSE 250 in the first half of next year. The group behind the Superdry clothing brand worn by David Beckham is valued at 400 million pounds and has hired Seymour Pierce to advise it on the listing. Chief executive Julian Dunkerton, who has a 52 percent stake in the firm, as well as James Holder and Theo Karpathios who each have around a 19 percent stake are all expected to receive large windfalls.

HANDMADE SEEKS TO FUND EXPANSION

At an extraordinary general meeting to be held on Monday, shareholders in Aim-listed film and production company Handmade will be asked to approve a recent 17 million pound equity and convertible loan note fundraising. As the company's directors are also its majority shareholders, the fundraising is expected to be approved. The funds will go towards establishing a Handmade Kids division, which will have 11 shows on US networks, making it amongst the biggest independent producers of children's content.

The Guardian

LLOYDS LEFT WITH 54 MILLION POUND TAX BILL AFTER HBOS RULING

Lloyds Banking Group has been told to pay 54 million pounds in corporation tax after initially being allowed to keep the proceeds of "highly artificial" transactions worth 180 million pounds. The transactions were carried out by HBOS Treasury Services, part of the HBOS group now owned by Lloyds. Judge Howard Nowlan said the transactions, which date back to 2003, represented "the acceptance by Treasury Services of a marketed tax avoidance scheme". HBOS defended itself against accusations of improper conduct, but declined to comment further because of the continuing legal proceedings.

JOHN LEWIS RINGS UP PRE-CHRISTMAS CHEER WITH BUMPER SALES

John Lewis has revealed bumper sales figures in the run-up to Christmas, recording revenues of around 72 million pounds in the past week. The takings were 17 percent higher than last year's, which came off the back of the near-collapse of several banks. John Lewis's director of operational development, Andrew Murphy, said the figures were "a clear sign that Christmas has begun in earnest". New British Retail Consortium figures show like-for-like central London retail sales up 4.2 percent in October from last year.

BA CABIN CREW HOLD CHRISTMAS STRIKE BALLOT

British Airways cabin crew are preparing for industrial action this Christmas as a strike ballot gets underway. Unite, the trade union, predicts that more than 12,000 staff will vote to strike in a dispute over job losses. If they do, BA's fleet could be grounded from 21 December and throughout the Christmas period. BA chief executive Willie Walsh has written to Unite seeking negotiations over plans to reduce cabin crew costs by 140 million pounds annually, but staff are said to be "angry" that changes have already removed one crew member from every Boeing 747 flight.

Prepared for Reuters by Durrants

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By Tracy Rucinski and Rhys Jones

MADRID, Nov 13 (Reuters) - British Airways' pension fund deficit could yet scupper its planned merger with Spain's Iberia, as the UK airline still has to agree the size of the multi-billion pound shortfall with the fund's trustees.
Iberia, which on Friday posted a bigger than expected nine-month operating loss, agreed with BA on Thursday to create a group with a combined market value of $7 billion as they continue to battle the worst industry downturn in decades.
But BA's pension deficit was one of the main stumbling blocks in the 16-month merger talks and was a key negotiating point for Iberia, which is reserving the right to back out of the deal if the funding hole turns out to be bigger than the 3 billion pounds ($5 billion) which analysts have forecast.
BA pension trustees undertook a triennial review of the pension scheme earlier this year but the results have yet to be announced, with BA saying it expects to agree a figure with the trustees in the next two to three months.
"The market will be looking at the discount rate used by BA's trustees to calculate its pension liabilities. You'd expect them to use a favourable one to help push the deal through though, especially since the deficit is bigger than its market value right now" a London-based analyst said.
"There's still a risk that the deal will fall through. It's all hanging on BA's negotiating weight with the trustees over its pension," a Madrid-based equities sales trader said.
Iberia's shares closed 3.15 percent lower at 2.15 euros, after Thursday's 12 percent gain, while BA was 0.93 percent higher at 217 pence.
Some analysts said they were surprised that the terms of a deal had even been announced before the pension issue has been resolved.
Analysts believe BA could insure all or part of its liabilities through a buy-out deal with a specialised insurer or hedge specific risks such as the longevity of pensioners through a swap deal or pledge contingent assets such as its real estate.

The new company will combine British Airways' strong position in Europe-to-North America traffic with Iberia's Latin American business, and will potentially be reinforced by a planned alliance with AMR Corp's American Airlines.
So far the deal looks set to give BA shareholders 55 percent of the new company, effectively giving it control, but the balance of power remains in question and could shift in Iberia's favour depending on the outcome of BA's talks with trustees over its pension deficit.
The BA-Iberia format mirrors the ground-breaking 2004 merger of Air France and KLM, which airline industry executives describe as a back-office merger designed mainly to slash costs.
Under this model, the airlines would maintain their own fleets and networks, which operate under the banner of national traffic rights, but would be owned by a common holding company.
"This is a five-year plan to get through the crisis and generate cash, and then BA will firmly take the driving seat," said Enrique Quemanda, Chief Executive of boutique investment firm ONEtoONE.
The pair, who have targeted annual synergies of about 400 million euros by the end of the fifth year, will combine BA's strong position in north Atlantic traffic with Iberia's Latin American business, which will potentially be reinforced by a planned alliance with American Airlines.
Britain's Unite union said on Friday it would not back the merger unless commitments are given to avoid significant job losses as both airlines seek to streamline shared functions.

"We need assurances from the outset from British Airways and Iberia that compulsory redundancies will be avoided. Our continued support for this project are dependent upon a satisfactory agreement being reached between us and both companies," said Steve Turner, Unite's national officer for civil aviation.
Spanish unions were more positive on the merger proposal, with the UGT transport union saying its concerns over job security, the continuance of Iberia's business lines and a safeguard against BA's pension fund exposure had been allayed.
"These three aspects have been guaranteed if we look at the explanations in the document presented to (Spanish stockmarket regulator) the CNMV," the union said in a statement on its website.
A spokesman for Spanish pilots' union Sepla told Spanish radio: "We have to look in the future. It seems to be a good deal. A lot of people in Europe will be jealous about this."

-------------------------------------------------------------- ((For a graphic comparing BA and Iberia, click on http://graphics.thomsonreuters.com/119/EZ_BYIBCP1109.gif)) -------------------------------------------------------------- BA's merger ambitions have historically been frustrated by its dominant position at London Heathrow, the world's busiest international airport, and the European Commission could still force the carrier to give up or sell take-off and landing slots there to allow a transatlantic alliance with American Airlines to go ahead.
"I'd expect the pensions issue to be more of an obstacle than getting competition clearance. I would expect Europe to welcome the creation of another big player," said Astaire analyst Douglas McNeill.
Iberia said its loss before interest and taxes widened to 331 million euros, and was bigger than analysts' average forecast for a 320 million euro loss, as aggressive cost-cutting was not enough to compensate for a 20 percent fall in revenues.
"Iberia has done some aggressive campaigning to fill its planes, even at cheap fares, and margins have suffered as a result," an analyst in Spain who asked not to be named said.
The airline swung to a net loss of 181.9 million euros from a 51.1 million euro profit a year ago as the economic crisis continued to dent passenger numbers, Iberia said on Friday.
"The airline industry in Spain is facing exceptionally difficult circumstances," Iberia said.
Iberia carried 5.1 percent fewer passengers in October, while its load factor -- a measure of how full its planes fly -- improved to 80.6 percent.
British Airways posted last week posted a 292 million pound pretax loss and said predicted revenue would slump by 1 billion pounds this year.
The International Air Transport Association expects airlines to lose $11 billion in 2009.

((For FACTBOX on how combined company would look click on ))

($1=.6668 euros)

($1=.6017 pounds)

(Additional reporting by Rhys Jones and Robert Hetz, Editing by Erica Billingham, Greg Mahlich and Simon Jessop) Keywords: IBERIA/ (tracy.rucinsk@thomsonreuters.com; Reuters Messaging: tracy.rucinski.reuters.com@reuters.net; +34 91 585 2153)

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DUBLIN, Nov 13 (Reuters) - Ryanair Holdings PLC:

Nov 13 (Reuters) - Spanish airline Iberia posted a bigger than expected nine-month operating loss on Friday, just hours after agreeing a merger deal with British Airways.
The boards of BA and Iberia announced late Thursday their agreement to create the world's third-largest airline by revenue as they continue to battle the biggest industry downturn in decades.
Following are key dates in talks between BA and Iberia:
July 18, 1997 - Iberia confirms preliminary deal on a co-operation pact with BA.
Oct. 27, 1998 - BA agrees to take a stake in Iberia alongside American Airlines. Spanish state holding company SEPI, which then owned Iberia, said the deal was for BA to buy a stake of between 8.2 and 9.1 percent.
Dec. 10, 2003 - BA and Iberia win European Commission approval to operate proposed alliance in the European Union.
June 24, 2004 - Iberia announces plans to start joint accounts with BA on routes between Spain and Britain.
Sept. 8, 2004 - BA raises about 425 million pounds ($704.4 million) by selling its stake in Australia's Qantas Airways , sparking speculation that it may increase its 9 percent stake in Iberia.
Nov. 15, 2006 - BA says buys American Airlines' stake in Iberia for 19 million euros ($28.5 million), raising its stake in the Spanish carrier to about 10 percent.
March 30, 2007 - BA appoints UBS to advise it on its 10 percent holding in Iberia, after news that private equity firm Texas Pacific Group (TPG) had made a 3.4 billion-euro bid approach for Iberia.
April 23, 2007 - BA rules out making an independent bid for Iberia, instead siding with a consortium led by TPG.
July 17, 2007 - BA's chief executive, Willie Walsh, shrugs off threat of rival bid from Air France-KLM for Iberia, saying he is confident BA's bid with TPG is fair value.
Nov. 26, 2007 - The consortium led by TPG and BA says it has withdrawn its bid. Shares in Iberia fall more than 5 percent the next day.
Feb. 1, 2008 - Walsh says BA is in talks to strengthen ties with Iberia.
July 3, 2008 - BA confirms reports it is in talks with Iberia and American Airlines about a three-way transatlantic tie-up.
Aug. 14, 2008 - BA, American Airlines and Iberia announce they have agreed to a transatlantic tie-up intending to cooperate commercially on flights between the United States, Mexico and Canada and the EU, Norway and Switzerland.
Oct. 8, 2008 - Unions representing pilots for BA and Iberia announce they favour a proposed merger.
Dec. 18, 2008 - Shares in Iberia rise almost 5 percent on improved merger hopes with BA after talks about a tie up between the UK airline and Australia's Qantas are called off.
Feb. 25, 2009 - BA would accept a 55 percent stake in the enlarged company, the El Economista newspaper reports. BA hoped it could net a 65 percent stake of the combined company.
July 9, 2009 - Fernando Conte, outgoing chairman of Iberia, steps down and is replaced by proven dealmaker Antonio Vazquez, an appointment seen as boosting the chances for a merger.
July 13, 2009 - BA is ready to accept close to a 50-50 ownership deal for a merger with Iberia , El Economista says.
Nov. 6, 2009 - BA reports a pretax loss for the six months to end-September of 292 million pounds ($482.4 million).
Nov. 12, 2009 - BA and Iberia announce a preliminary agreement which will create a group with a combined market value of $7 billion. The deal should be closed by end 2010. BA shareholders will have 55 percent of the combined firm, with 419 aircraft flying to 205 destinations, while Iberia shareholders are to get 45 percent.
Nov. 13, 2009 - Iberia reports a net loss of 181.9 million euros from a 51.1 million euro profit a year ago as the economic crisis continues to dent passenger numbers.

((For main story please click on ))

((For graphic please click on http://graphics.thomsonreuters.com/119/EZ_BYIBCP1109.gif ))

(Writing by David Cutler and Jijo Jacob, Editorial Reference Units in London & Bangalore; Editing by Greg Mahlich) Keywords: BA IBERIA/EVENTS (david.cutler@thomsonreuters.com; +44 20 7542 7968; Reuters Messaging: david.cutler.reuters.com@reuters.net)

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Nov 13 (Reuters) - IBERIA:

Nov 13 (Reuters) - IBERIA:

Nov 13 (Reuters) - IberiaMC>:

MADRID, Nov 13 (Reuters) - Spanish airline Iberia posted bigger than expected nine-month operating losses on Friday, evidence of the difficulties it aims to address by the planned merger with British Airways announced on Thursday.
"The airline industry in Spain is facing exceptionally difficult circumstances," Iberia said in a statement.
Iberia and BA have agreed a $7 billion merger to create the world's third-largest airline by revenue in an aim to cope with the industry's largest downturn in decades.
The International Air Transport Association expects airlines to lose $11 billion in 2009.
Iberia said its loss before interest and taxes widened to 331 million euros, while analysts had on average forecast a 320 million euro loss.
The airline swung to a net loss of 181.9 million euros from a 51.1 million euro profit a year ago as the economic crisis continued to dent passenger numbers, Iberia said on Friday.
Iberia carried 5.1 percent fewer passengers in October, while its load factor -- a measure of how full its planes fly -- improved to 80.6 percent.

(Reporting by Tracy Rucinski, editing by Will Waterman)

($1=.6668 Euro) Keywords: IBERIA/ (tracy.rucinsk@thomsonreuters.com; Reuters Messaging: tracy.rucinski.reuters.com@reuters.net; +34 91 585 2153)

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By Tracy Rucinski

MADRID, Nov 13 (Reuters) - Spanish airline Iberia posted a wider-than-expected nine-month operating loss on Friday, evidence of the difficulties it aims to address by its planned merger with British Airways.
BA and Iberia agreed the deal late on Thursday to create the world's third-largest airline by revenue in a move to cope with the industry's largest downturn in decades.

The new company will combine British Airways' strong position in Europe-to-North America traffic with Iberia's Latin American business, and will potentially be reinforced by a planned alliance with AMR Corp's American Airlines.
By 0933 GMT, Iberia's shares were 2.4 percent higher to 2.274 euros, extending Thursday's 12 percent gain, while BA was 2.5 percent higher at 221 pence.
Iberia said its loss before interest and taxes widened to 331 million euros, and was bigger than analysts' average forecast for a 320 million euro loss, as aggressive cost-cutting was not enough to compensate for a 20 percent fall in revenues.
"Iberia has done some aggressive campaigning to fill its planes, even at cheap fares, and margins have suffered as a result, " an analyst in Spain who asked not to be named said.
The airline swung to a net loss of 181.9 million euros from a 51.1 million euro profit a year ago as the economic crisis continued to dent passenger numbers, Iberia said on Friday.
"The airline industry in Spain is facing exceptionally difficult circumstances," Iberia said.
Iberia carried 5.1 percent fewer passengers in October, while its load factor -- a measure of how full its planes fly -- improved to 80.6 percent.
British Airways posted last week posted a 292 million pound pretax loss and said predicted revenue would slump by 1 billion pounds this year.
The International Air Transport Association expects airlines to lose $11 billion in 2009.
BA and Iberia expect to close their merger in December, 2010, with BA's Chief Executive Willie Walsh taking over as CEO and Iberia's chairman Antonio Vazquez as chairman of the new company.
BA will control 55 percent of the new company, based in London, and Iberia 45 percent.
"Our impression is that Iberia has rushed into this deal and in the process has accepted a less favourable exchange ratio. We were betting on a 47-53 division of the new company," a Madrid-based equities sales trader said.
"And there's still a risk that the deal will fall through. It's all hanging on BA's negotiating weight with Trustees over its pension," he said.
BA's pension deficit, which stood at around 3 billion pounds at the end of its first half, was one of the main stumbling blocks to the 16-month merger talks and was as a key negotiating tool for Iberia.
Iberia said it was reserving the right to back out of the merger if the final agreement between BA and the administrators of its pension is not "reasonably satisfactory."
Iberia is due to hold a conference call at 1100 GMT, where investors will be looking for more details on the planned tie-up.
(Reporting by Tracy Rucinski, Editing by Will Waterman and Erica Billingham)

($1=.6668 Euro) Keywords: IBERIA/ (tracy.rucinsk@thomsonreuters.com; Reuters Messaging: tracy.rucinski.reuters.com@reuters.net; +34 91 585 2153)

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MADRID, Nov 13 (Reuters) - Spanish airline Iberia posted bigger than expected nine-month operating losses on Friday, evidence of the difficulties it aims to address by the planned merger with British Airways announced on Thursday.
"The airline industry in Spain is facing exceptionally difficult circumstances," Iberia said in a statement.
Iberia and BA have agreed a $7 billion merger to create the world's third-largest airline by revenue in an aim to cope with the industry's largest downturn in decades.
The International Air Transport Association expects airlines to lose $11 billion in 2009.
Iberia said its loss before interest and taxes widened to 331 million euros, while analysts had on average forecast a 320 million euro loss.
The airline swung to a net loss of 181.9 million euros from a 51.1 million euro profit a year ago as the economic crisis continued to dent passenger numbers, Iberia said on Friday.
Iberia carried 5.1 percent fewer passengers in October, while its load factor -- a measure of how full its planes fly -- improved to 80.6 percent.

(Reporting by Tracy Rucinski, editing by Will Waterman)

($1=.6668 Euro) Keywords: IBERIA/ (tracy.rucinsk@thomsonreuters.com; Reuters Messaging: tracy.rucinski.reuters.com@reuters.net; +34 91 585 2153)

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For a story on Iberia's merger with British Airways, please double-click on

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BRITISH AIRWAYS SHARES RISE 3.3 PCT, IBERIA UP 3.5 PCT AFTER THEY SAY AGREE MERGER

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MADRID, Nov 13 (Reuters) - Spanish airline Iberia posted bigger than expected nine-month operating losses on Friday, evidence of the difficulties it aims to address by the planned merger with British Airways announced on Thursday.
"The airline industry in Spain is facing exceptionally difficult circumstances," Iberia said in a statement.
Iberia and BA have agreed a $7 billion merger to create the world's third-largest airline by revenue in an aim to cope with the industry's largest downturn in decades.
The International Air Transport Association expects airlines to lose $11 billion in 2009.
Iberia said its earnings before interest and taxes (EBIT) widened to 331 million euros, while analysts had on average forecast a 320 million euro loss.
The airline swung to a net loss of 181.9 million euros from a 51.1 million euro profit a year ago as the economic crisis continued to dent passenger numbers, Iberia said on Friday.
Iberia carried 5.1 percent fewer passengers in October, while its load factor -- a measure of how full its planes fly -- improved to 80.6 percent.

(Reporting by Tracy Rucinski, editing by Will Waterman)

($1=.6668 Euro) Keywords: IBERIA/ (tracy.rucinsk@thomsonreuters.com; Reuters Messaging: tracy.rucinski.reuters.com@reuters.net; +34 91 585 2153)

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Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.