Shares in Iberia fell EUR 0.04 to EUR 3.24 yesterday as reports swirled that its long time suitors, British Airways and financial investors Texas Pacific Group (TPG), could cut the price they are prepared to pay for the Spanish airline.
Previously, the bidders had indicated that they would pay EUR 3.60 a share. However, recent market turbulence has changed the outlook for many bidders, as well as the prospect of lower air fares in the future, according to a report.
An offer is expected to be put forward before Iberia's board meeting on September 27. However, any offer lower than the previously indicated price is unlikely to be recommended.
The board only allowed due diligence to be conducted on the basis that a EUR 3.60 bid could be expected. Some analysts have suggested that other interested parties, such as Germany's Lufthansa, could come in as white knights if this was the case.