Buxton sees 'material upside' in BA as investors agree merger

Schroders' Richard Buxton believes British Airways shares have "material upside" as investors continue to underestimate the benefits of its merger with Iberia.

Buxton, who holds £72m worth of BA shares in his £2.25bn Schroder UK Alpha Plus fund, has held the stock throughout the airline's volatile recent past, which included a major slowdown in passenger numbers from the credit crisis and industrial action from cabin crew. British Airways, which got overwhelming shareholder approval for its Iberia merger earlier this week, also posted a first profit in two years in Q3. "Monday's outcome, with both BA and Iberia shareholders voting in favour of a merger, was completely as expected, so there should be little share price reaction," Buxton says....