Iberia Not Obliged To Make Full Vueling Bid

Spain's stock market regulator has exempted Iberia from launching a full bid for low-cost airline Vueling, the Spanish flag carrier said Monday.

Iberia's budget offshoot Clickair is due to seal its merger with Vueling in July.

On completion of the deal, Iberia is set to own 45.85 percent of the new group, exceeding the 30 percent threshold which normally triggers the obligation to make a full bid according to stock market regulations.

Iberia requested exemption from this obligation earlier this month.

The creation of the new airline, which will also be called Vueling, will save EUR25 million euros (USD$35 million) of costs a year over three years and boost revenue by EUR40 million to EUR45 million a year, according to Vueling's projections.