REFILE-Australia says open to British Airways, Qantas merger

(Refiles to correct date)

By Sonali Paul and Rob Taylor

MELBOURNE/CANBERRA, Dec 3 (Reuters) - Australia left the door open on Wednesday to a merger between national airline Qantas Airways (QAN.AX) and British Airways (BAY.L), but threatened to slam it shut if it felt Qantas was effectively being taken over.

Australian Transport Minister Anthony Albanese made the comment after Qantas and British Airways revealed on Tuesday they were in talks to form a dual-listed airline, which would be worth almost $6 billion at current market prices.

"The advice to the government is certainly that that (a takeover of Qantas) is not the case," Albanese told state radio.

"Were that to be the case, the government would certainly not support it ... We would want to be satisfied that any changes are in the Australian national interest and the government is watching closely these negotiations."

Qantas shares leapt almost 10 percent on the news, hitting a high of A$2.47 in opening trade, though some of its shareholders voiced a mixture of concern and support for a union.

"I would support that type of move," said Angus Gluskie, of White Funds Management which owns Qantas shares, citing a need to cut costs given falling demand and the risk of global recession.

But another Australian fund manager, who declined to be identified, said Qantas was unlikely to yield much more cost savings from a merger with British Airways than it could already achieve through its current code-sharing partnership.  Continued...