IAG starts another round of share buy-backs to support Air Europa acquisition

British Airways and Iberia parent IAG is pursuing another share buy-back programme intended to support its proposed acquisition of Spanish operator Air Europa. IAG states that it will acquire a maximum of just over 27m shares, and has allocated E70m ($75m) to the programme. The company is undertaking the share purchase in order to hedge its requirement to provide shares to Air Europa owner Globalia as part of IAG’s consideration for purchasing the carrier. Financial firm Goldman Sachs Bank Europe will make the share purchases on IAG’s behalf, with the programme running from 1 July to 2 August. IAG holds 20% of Air Europa, following conversion of a E100m loan, and is looking to take the remaining 80%. It embarked on a similar buy-back last year under which it acquired 27m shares for the purpose of pursuing Air Europa deal. The shares are being held in treasury while IAG awaits regulatory clearance to progress with the acquisition.<br/>