IAG International Airlines Group will undertake a share purchase programme between July 1 and August 2, “for the purposes of hedging its requirement to deliver shares to Globalia”, as part of its Iberia (IB, Madrid Barajas) subsidiary's proposed acquisition of the remaining 80% of the issued share capital of Air Europa (UX, Palma de Mallorca).

IAG said in a filing to the London Stock Exchange that it will acquire up to 27,064,575 ordinary shares, representing just 0.5% of its share capital as of July 1. It has allocated a maximum of EUR70 million euros (USD75.1 million) for the buyback.

Goldman Sachs will acquire the shares on IAG’s behalf which will then be held in treasury. However, if the proposed Air Europa acquisition is not completed, stock bought under the buyback may be used for share awards for executives and employees.

The European Commission is currently analysing IAG’s latest remedy package to acquire Air Europa and has until August 20 to decide on the proposal. However, it could use the ‘stop the clock’ mechanism once more or extend the deadline, delaying the final decision.