The Spanish government is planning to sell its stake in the country's flagship carrier Iberia at a price per share nearly 8% more than that offered by private equity group TPG in March in the latest twist to the long-running sale of the airline.

SEPI, the government's privatisation agency which owns a 5.1% stake in Iberia, announced to the Spanish budget commission yesterday the group intended to sell its holding for €3.88 per share, amounting to €191m ($271m), according to a report in Spanish paper El Pais.