BA confirms board talks on Iberia merger deal

London: British Airways PLC says that it and Spanish airline Iberia SA are holding separate board meetings about a long-awaited merger.

BA says that Thursday's meetings will consider a "potential transaction" and that no deal has yet been reached.

BA's statement follows a surge in its share price on speculation that an announcement on a deal with Iberia is imminent - ending months of difficult negotiations. The stock was up 7 per cent at 214 pence ($3.54) on Thursday.

The talks - begun in July 2008 in response to slower passenger demand at both airlines - have previously faltered over BA's large penion fund deficit and the proposed structure of a new company.