BA/Iberia

[Munnyspinner]

I have heard an unconfirmed rumour that BA and Iberia have today ironed out their differences and that the merger looks like being signed off by the Spanish, following their regular board meeting.

This might explain the surge in Iberia stock price.

Good news?

[davidjohnson6]

Could also be that the rise in the share price is partly down to planned staff cuts (stock markets are warped in this way - they often reward companies that want to make people unemployed)

Avionews (http://www.avionews.com/index.php?corpo=see_news_home.php&news_id=1103391&pagina_chiamante=index.php)

[malagajohn]

Every time an agreement loooks to have been made , the Spanish financial press talk about the pension fund deficit

Does anyone have an idea what the current deficit is and what it was when negotiations first started?

[exeng]

Quoting from today's Telegraph:

The annual reports for the two schemes to March 31, 2007, show a £5bn deficit in NAPS on a buy-out basis and a £1bn deficit in APS. Given the fall in asset prices since then, the total deficit will now be significantly worse

See full article here: BA pension deficit 'dwarfs market value' - Telegraph (http://www.telegraph.co.uk/finance/newsbysector/transport/3392089/BA-pension-deficit-dwarfs-market-value.html)

Pretty awful really as APS was fairly well funded until fairly recently. NAPS seems to have always been in deficit.


Regards
Exeng

[malagajohn]

Iberia share price falls 10% today - yesterday the board announced no dividend pay out for last year