Iberia Pulls Out Of Spanair Deal

Iberia said on Thursday it would drop its bid for Spanair, shortly after the chairman said Iberia was rethinking its stance on the offer because of hard times in the sector.

Iberia said in a statement released to the Spanish stock exchange after the market closed it would withdraw its bid because there was no agreement on conditions linked to the deal.

Airline shares around the world have been hit in recent months by a jump in oil prices and a slowdown in economic growth, making Iberia’s offer more expensive than when the Spanish carrier’s board approved a bid in February.

“The truth is the clock is ticking. The environment is changing. We have to consider what is the future of our offer within this new market environment,” Chairman Fernando Conte told a news conference before the annual shareholders meeting.

Shortly after the comments, Scandinavian carrier SAS said it might abandon its plan to sell Spanair if it was unable to carry out a deal before the end of the second quarter.

“If SAS does not reach a satisfactory solution regarding the divestment, SAS will abandon the current sales process and continue as a shareholder committed to ensure a profitable Spanair,” a statement from the Stockholm-based airline said.