The UK Pensions Regulator is in danger of being struck off the private equity industry’s Christmas card list this year. Firms believe it is biased, more willing to nod through a public takeover rather than a take private.

Industry observers say they will therefore be watching with interest to see how the regulator acts in the proposed merger of UK and Spanish airlines British Airways and Iberia. Their charge: the regulator will wave through the BA-Iberia merger, a deal they would not have sanctioned were a similar scheme proposed by a private equity group.