British Airways is investigating a consortium bid for Iberia in partnership with four private equity groups.
The groups are TPG Capital, Vista Capital, Inversiones Ibersuizas and Quercus Equity.
In a statement today, the airline confirmed it was investigating a consortium bid but said there is no guarantee that a formal bid will be made.
It also said it has already ruled out further capital investment as part of any consortium offer and will not make an independent bid for the airline.
BA already owns a 10% stake in Iberia and has an option to buy another 26.5%.
Lufthansa is also considering a bid for the Spanish airline.
By Bev Fearis
