Air France-KLM prepares bid for Spain's Iberia

Mumbai: French-Dutch airline Air France KLM will team up with two Spanish firms to bid for Spain's Iberia against a group led by private equity group TPG, newspaper reports said.

The Air France KLM offer would keep 51 per cent of Iberia in Spanish hands, allowing the airline to keep flying certain routes in Spain and abroad, the report said.

TPG, in a consortium with British Airways and Spanish firms Ibersuizas, Vista Capital and Quercus Equity, has been talking to Iberia management for months and has made an indicative offer of 3.60 euros a share.

Air France KLM plans to bring on board two Spanish family investment vehicles - Torreal, which belongs to Juan Abello, and Planeta, owned by the Lara family, the lead shareholder in Barcelona-based airline Vueling.