British Airways is teaming with TPG in a possible bid for Iberia Airlines.

And that's exactly what they have to do if they want to protect their 9% stake, which, according to Forbes, "allows it to take advantage of those routes to Latin America via Spain." TPG, formerly known as Texas Pacific Group, has set their sites on Spain's Iberia Airlines and is considering a $4.6 billion bid for it.

However, British Airways has not committed to anything quite yet. In a statement, the company said, "There is no guarantee that a formal bid will be made."

Like the daunting necessity of a root canal, investors in British Airways know Europe's third-biggest airline must at some point join in the consolidation that's taking place in the region's aviation sector. On Tuesday, they sent the carrier's shares down 11 pence (22 cents), or 2.3%, to 469 pence ($9.26), when BA confirmed it was supporting the American private-equity outfit TPG in its bid for Iberia, Spain's biggest airline.

"British Airways has joined with TPG Capital, Vista Capital de Expansión, Inversiones Ibersuizas and Quercus Equity to investigate a possible consortium offer for Iberia. There is no guarantee that a formal bid will be made," the company said in a brief statement. BA has previously ruled out putting new capital of its own into Iberia.

(Continue reading this story on Forbes)

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