PRESS: Iberia and BA-owner IAG likely to drop bid for TAP Air Portugal

(Alliance News) - International Consolidated Airlines Group SA is likely to give up its attempt to buy a stake in TAP Air Portugal from the Portuguese government, Bloomberg reported late on Friday.

No final decision has been made by IAG, Bloomberg said, citing "people familiar with the matter", but it is leaning against pursuing a deal. This is because Lisbon is offering to sell only a 49.9% stake in state-owned TAP, and a minority holding doesn't fit with IAG's strategy, they said.

The government also is imposing conditions on a sale such as keeping the airline's hub in Lisbon and protecting key routes.

IAG shares were up 3.7% to 358.30 pence on Monday morning in London.

By Tom Waite, Alliance News editor

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