IAG hunts for new brokers as joins FTSE

Marion Dakers
INTERNATIONAL Consolidated Airlines Group (IAG) began trading in London and Spain yesterday as British Airways and Iberia continued to complete their merger.

IAG shares closed at 285p in London yesterday, 3p above BA’s final price of 282p.

The new firm is overhauling its advisory teams, with a beauty parade underway for a corporate broker.

UBS, which acted as broker for BA, and Iberia’s broker Morgan Stanley both declined to comment yesterday.

A spokesperson for IAG said: “As any new company would, IAG is taking the opportunity to review its advisers,” but declined to comment on which banks were in the running.

The company repeated its pledge to expand globally as it entered the FTSE 100 yesterday.

IAG chief executive Willie Walsh, formerly the head of BA, told reporters at the London Stock Exchange this morning: "British Airways and Iberia are the first two airlines in IAG but they won’t be the last.”

Bank of America Merrill Lynch told investors in a note that while the enlarged network can expand its capacity to drive growth, it is likely to be hit hard by turbulent fuel prices and further labour issues over the next two years.

British Airways, which will continue to operate under the brand name, also said yesterday it was disappointed by the Unite union’s decision to hold another round of strike action.