IAG looking to take over Spanish airline Vueling

International Consolidated Airlines Group, otherwise known as IAG, is thinking about making an offer to take over Spanish airline Vueling, buying up the remaining stake that it does not already own.

IAG, the owner of British Airways which already runs the loss-making Iberia and Iberia Express in Spain, said it is considering making an offer for 100% of the share capital of Vueling.

The company already owns a 45.85% stake in the airline through Iberia.

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"The IAG board will be considering the matter tomorrow but no decision to make an offer has yet been reached nor, accordingly, on any of its potential terms, including in particular the price," the group said.

At the time of its first-half results in August, IAG cautioned about its "high exposure" to the Eurozone periphery through Iberia's Spanish base: Iberia provides 27% of the group's external turnover, with around half of this coming from Spain.

Iberia is currently undergoing a restructuring after generating a loss in the first half, which IAG said was down to the deterioration in the Spanish economy and rising competition from competitors.

"After growing slowly in 2011, the Spanish economy is expected to contract in both 2012 and 2013. We are currently assessing the impact of this depressed outlook on Iberia and are considering a re-evaluation of all aspects of the business," the group said in August.