Rumours have continued to circulate around the sale of Spanish flag-bearing airline Iberia, with Lufthansa now claimed by many to be preparing a takeover.

Spanish newspapers Expansion and Cinco Dias both reported that the German air giant was ready to make a bid for Iberia valued at around €3 per share, but Lufthansa has strongly denied the claim.

Lufthansa executives were reported as expressing interest in the €3 share price, sparking rumours of an imminent takeover, but subsequently the company has poured water on the idea.

Agence France-Presse reported the comments of a spokesperson for the German airline, who was categorical in refuting the claim: “This is not true. We deny it”.

The sale of Iberia has raised many an interested bidder, with the airline currently one of the leading providers of flights between Spain and the UK, as well as other destinations.

Lufthansa, among other potential bidders, has indicated that British Airways – currently a ten per cent shareholder in Iberia – needs to be the first one to act.

Shares in Iberia fell slightly at the end of last week, after Lufthansa punctured the rumours claiming it was ready to make a bid for the Spanish giant.