Aug 1 (Reuters) - International Consolidated Airlines

Group SA:

* INTL CON AIRLINE GRP - IAG TERMINATES ACQUISITION OF AIR

EUROPA

* IAG: BOARD CONCLUDED THAT IN CURRENT REGULATORY

ENVIRONMENT IT

WOULD NOT BE IN BEST INTERESTS OF SHAREHOLDERS TO CONTINUE WITH

TRANSACTION

* IAG: WILL PAY GLOBALIA EUR 50 MILLION AS A BREAK FEE AS A

RESULT

OF TERMINATION

* IAG- RETAINS 20% STAKE IN AIR EUROPA

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