STOCKS NEWS EUROPE-BA up on 'imminent' Iberia merger report

Shares in British Airways (BAY.L) rise 2 percent in early trade after Britain's Sky News reports that BA and Spanish airline Iberia (IBLA.MC) could announce a merger agreement as early as this week, citing unidentified sources.

The report says the two airlines have resolved sticking points including who would run the combined company.

"Willie Walsh (BA's Chief Executive) last week said that corporate governance progress has been made on the Iberia deal. We made the comment then that it sounds to us that this will happen over the coming weeks so I would not be surprised if it is imminent," says Davy stockbrokers analyst Stephen Furlong.

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Reuters messaging rm://rhysl.jones.reuters.com@reuters.net