Morgan Stanley, UBS advise Iberia and BA

LONDON (Reuters) - Morgan Stanley and UBS AG are advising Iberia and British Airways, respectively, on the two airlines' talks about a merger, a banking source close to the deal said on Tuesday.

British Airways said on Tuesday it is in talks with Spanish carrier Iberia about a potential all-share merger. BA said the discussions had the support of both companies, although it expected it would take several months before terms could be agreed.

(Editing by Paul Bolding)