Air France-KLM eyes Iberia Airlines

PARIS, July 17 (UPI) -- Air France-KLM SA is looking at Iberia Airlines of Spain SA as a possible merger target, the French airline said.

The announcement means Air France-KLM might challenge British Airways PLC and U.S. private-equity firm TPG Capital LP, which have made a preliminary $4.69 billion offer for the Spanish airline.

"In Europe, Spain is one of the major markets and Iberia an important player in air transport," Air France-KLM said in a statement.

"Taken in the perspective of much-needed consolidation for the efficiency and profitability of the air transport sector, it is therefore quite normal for it to be examined among others," Air France-KLM's statement continued.

Iberia had no immediate comment.

The Air France-KLM announcement followed reports in The Financial Times and Spanish business paper El Economista the Franco-Dutch airline was in talks about joining a consortium led by the Apax Partners private-equity firm to launch a bid for Iberia.

The consortium, including Spanish publisher Jose Manuel Lara and billionaire investor Juan Abello, would be willing to offer $5.3 billion, or $5.51 a share, for the Spanish carrier, the newspapers said.

Consortium members declined to comment.