British Airways said on Tuesday it had decided to join a bid for Spanish airline Iberia led by private equity firm Texas Pacific Group.

TPG and its partners have already made an indicative bid worth 3.4 billion euros ($4.6 billion) for Iberia, or 3.60 euros per share.

“If a bid was successful, Iberia would remain in Spanish control, and the Spanish investors would put in more than 50 percent of the total capital investment,” said a BA spokeswoman.
Without this, airport landing deals with Latin American states, on which Iberia's most sought-after routes are based, would have to be re-negotiated. “Our stake in Iberia has been very beneficial to BA, and we'd anticipate that continuing,” she said.