British Airways owner Luis Gallego not planning to raise billions from shareholders

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British Airways owner Luis Gallego not planning to raise billions from shareholders

Reuters - British Airways owner Luis Gallego is not planning to raise billions of euros from shareholders to get the company through the extended COVID - 19 crisis, its chief executive IAG told The Sunday Times.

We do not see the necessity to do a rights issue and are not considering it, Gallego told the newspaper https: bit.ly 3 Cphn 3 L, adding that the company was talking through different options with banks.

The comments come after media speculation about the company's plans to shore up its finances.

In May, IAG announced plans to raise 825 million euros in currency notes – 967 million on a convertible bond to bolster its balance sheet.

Gallego reported that the group had strong debts, but also had high liquidity of 10.2 billion euros, Times reported.

We are analysing other ways of financing the group so we have alternatives before we consider another rights issue, he told the newspaper adding that revolving debts will be group's priority.

Earlier this month, British airline Wizz Air refused to raise $1.7 billion from shareholders to recover from the pandemic and opted for a takeover approach from easyJet Plc.

Forked on whether he had discussed a merger with executive at easyJet, Gallego said: We talk to all airlines that can be interesting to us, according to the newspaper.