British Airways and Iberia Airlines are discussing "an all-share merger

." The companies said both brands would be retained. BA recently upped to 13.15 percent its minority ownership of Iberia, while Iberia said it acquired "a 2.99 percent direct shareholding in British Airways and financial exposure to a further 6.99 percent through contracts for difference linked to British Airways' share price." BA and Iberia expect negotiations on the merger agreement to last several months. The two airlines also are thought to be considering an antitrust-immunized with American Airlines.