IAG stocks nosedive as major Spanish investor looks to sell
SHARES in British Airways parent company International Airlines Group nosedived 2.7 per cent yesterday on news its largest shareholder Bankia would need to dispose of assets to raise cash.
The troubled Spanish bank has a 12 per cent stake in IAG following the bailout of Caja Madrid, which was a major stakeholder in Iberia before its merger with BA to form IAG.
Bankia, which has called for a further €19bn from the Spanish government, is IAG’s biggest shareholder along with another Spanish bank, Banco Financiero y de Ahorros.
Bankia chairman Jose Ignacio Goirigolzarri confirmed over the weekend that he will “logically look to start a sale process” of the bank’s assets and will give detailed plans to shareholders late next month.
Other companies in Bankia’s portfolio include energy firm Iberdrola, hotel company NH, food company SOS, and financial houses Bancofar and Inversis.
Yesterday shares fell 3.8p to 137.1p, making it the FTSE’s third-biggest faller.