Allen & Overy (A&O) has landed a high-profile instruction advising Spanish airline Iberia on its merger talks with British Airways (BA).

A&O is fielding a team led by Madrid managing partner Inigo Gomez-Jordana and London corporate veteran Alan Paul in what will be seen as a trophy mandate for the top five London firm.

Slaughter and May and Spanish referral partner Uria Menendez are acting for regular client BA. Slaughters' team is being led by M&A head Steve Cooke and corporate partner David Wittmann, with Bertrand Louveaux advising on competition matters. Madrid-based corporate partner Juan-Francisco Falcon is leading the team for Uria.