Iberia receives €3.4bn approach

Iberia said today it had received a bid approach from private equity firm Texas Pacific Group (TPG) that valued the Spanish airline…

Iberia said today it had received a bid approach from private equity firm Texas Pacific Group (TPG) that valued the Spanish airline at about €3.4 billion ($4.5 billion).

The cash approach, at an indicated price of €3.6 per share, is below Iberia's closing price yesterday of €4 and below a price tag mentioned by media reports and analysts of up to €4.4 per share.

Iberia said US-based TPG had asked to view its books and that the Spanish flag carrier's board would meet in the next few days to consider the request.

TPG would study the books for up to 30 days and could make a bid in the 10 days following that period, Iberia said.

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"This approach does not constitute in any way an offer for all or part of Iberia's capital, nor does it create any legal obligation or binding agreement for TPG," it said.

Iberia's share price has hit record highs in the past few days on bid speculation, rising 25 per cent in the last 10 days.