A merger between British Airways and Spain's Iberia is unlikely to be finalised this week,anindustrysourcesaidonThursday , after Britain's Sky News reported thatadealwassettobeannounced.
Thetalksarestillgoingonandthere is no imminent announcement scheduled, said the source, who declined to benamed.
Britain's Sky News on Wednesday reported a merger agreement could be concluded as early as this week after the two airlines resolved sticking points including who would run the combined company, citing unidentifiedsources.
Shares in BA were 6.2% higher at 212.2penceby1000GMT,whileIberia's shareswereup7.7%at2.14euros.ABA spokeswoman said that no decision hadbeentakenyetoverthemerger.
Talks continue between British Airways and Iberia with a view to a merger,shesaid.
No decisions have been taken and, at this time, there can be no guarantee thatatransactionwillbeforthcoming.
A further announcement will be made induecourse,if appropriate.
Airlines are being forced to merge and slash costs as well as seat prices to copewiththeindustry'sbiggestdownturn in decades, with global airlines lobby IATA predicting $11 billion in airlinelossesworldwidethisyear.
BA has been in merger talks with Iberia for around a year and has also applied to US and European authorities for competition clearance, or antitrust immunity, which would allow it tosharecostsandrevenuesontransatlantic routes with Iberia and AmericanAirlines(AA).
BA's chief executive Willie Walsh on Friday said a decision on BA's proposed merger with Iberia would likely comeintheverynearfuture.
Walsh also added he was confident in the strength of BA's case to win US department of transportation approvalforasalestie-upwithAmerican AirlinesandIberia.
BA has been in merger talks with Iberia for around a year and has also applied to US and European authorities for competition clearance, or antitrust immunity, which would allow it tosharecostsandrevenuesontransatlanticrouteswithIberiaandAA.
SomeanalystsbelieveWalsh'spositive comments mean a deal could be agreedinthecomingweeks.
Walsh last week said that corporate governance progress has been made on the Iberia deal. We made the comment then that it sounds to us that this will happen over the coming weeks, said Davy stockbrokers analyst StephenFurlong.
Word that the merger negotiations between BA and Iberia could be drawingtoaconclusioncameasAirFranceKLM--formed from a Franco-Dutch merger in 2004 --said it would cut ticket prices as part of a shake-up of medium-haulservices.
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