TIMELINE - BA and Iberia near merger deal

(Reuters) - The boards of British Airways and Spain's Iberia were holding separate meetings on Thursday to consider a potential merger to create the world's third largest airline by revenue, the two airlines said.

Following are key dates in talks between BA and Iberia:

July 18, 1997 - Iberia confirms preliminary deal on a co-operation pact with BA.

October 27, 1998 - BA agrees to take a stake in Iberia alongside American Airlines. Spanish company SEPI, which owns Iberia, says the deal is for BA to buy a stake of between 8.2 and 9.1 percent.

December 10, 2003 - BA and Iberia win European Commission ok to operate a proposed alliance in the European Union.

June 24, 2004 - Iberia announces plans to start joint accounts with BA on routes between Spain and Britain.

September 8, 2004 - BA raises about 425 million pounds ($704.4 million) by selling its stake in Australia's Qantas Airways, sparking speculation that it may increase its 9 percent stake in Iberia.

November 15, 2006 - BA says buys American Airlines' stake in Iberia for 19 million euros ($28.49 million), raising its stake in the Spanish carrier to about 10 percent.

March 30, 2007 - BA appoints UBS to advise it on its 10 percent holding in Iberia, after news private equity firm Texas Pacific Group (TPG) had made a 3.4 billion euro bid approach for Iberia.

April 23, 2007 - BA rules out making an independent bid for Iberia, instead siding with a consortium led by TPG.

July 17, 2007 - BA Chief Executive Willie Walsh shrugs off rivalry from Air France-KLM for Iberia, saying he is confident BA's bid with private equity firm TPG is fair value.

November 26, 2007 - The consortium led by TPG and BA says it has withdrawn its bid. Shares in Iberia fall more than 5 percent the next day.

February 1, 2008 - Walsh says BA is in talks to strengthen ties with Iberia.

July 3, 2008 - BA confirms reports it is in talks with Iberia and American Airlines about a three-way trans-atlantic tie-up.

August 14, 2008 - BA, American Airlines and Iberia announce they have agreed to a trans-atlantic tie-up intending to cooperate commercially on flights between the United States, Mexico and Canada and the EU, Norway and Switzerland.

October 8, 2008 - Unions representing pilots for BA and Iberia announce they favour a proposed merger.

December 18, 2008 - Shares in Iberia rise almost 5 percent on improved merger hopes with BA after talks about a tie up between the UK airline and Australia's Qantas are called off.

February 25, 2009 - BA would accept a 55 percent stake in the enlarged company, the El Economista newspaper reports. BA hoped it could net a 65 percent stake of the combined company.

July 9, 2009 - Fernando Conte, outgoing chairman of Iberia, steps down and is replaced by proven dealmaker Antonio Vazquez, an appointment seen as boosting the chances for a merger.

July 13, 2009 - BA is ready to accept close to a 50-50 ownership deal for a merger with Iberia , El Economista says.

November 12, 2009 - Iberia has decided to accept a merger deal with BA that will give it 45 percent of the new company and BA 55 percent, website Finanzas.com says.

-- Iberia confirms its board is discussing a merger.