* Deal maker Antonio Vazquez to replace Fernando Conte
* Iberia says change does not affect plan to merge with BA
* Denies departure related to shareholder pressure
* Shares rise 3.5 percent on news
By Ben Harding
MADRID, July 9 (Reuters) - The chairman of Spanish airline Iberia stepped down on Thursday and was replaced by proven dealmaker Antonio Vazquez, an appointment seen as boosting chances of a merger with British Airways.
Analysts said the arrival of Vazquez, who oversaw the sale of Altadis to Britain's Imperial Tobacco in 2007, would act as a catalyst in merger talks with BA, which are bogged down a year after they were first announced.
A spokesman for Iberia, Europe's fifth-largest airline by value, said departing boss Fernando Conte told the board at the beginning of the year that he wanted to step down before his 60th birthday in March 2010.
A Spanish newspaper report earlier this week said its main shareholder Caja Madrid was unhappy with the lack of progress under Conte towards the merger with BA, Europe's fourth-largest airline by market capitalisation.
The spokesman denied that this had been the reason for his surprise departure after six years as boss.
"This has absolutely nothing to do with shareholder pressure, the merger with British Airways, or results," the spokesman said. "The merger discussions continue. This does not affect them in any way."
British Airways praised Conte but welcomed the appointment of Vazquez, who was a board director at Iberia from 2005 to 2007.
"We are confident that (Vazquez's) business and leadership skills will ensure that the relationship with British Airways will continue to develop. We look forward to working with him on all matters including the ongoing merger discussions," BA CEO Willie Walsh said.
Iberia shares had risen 3.11 percent to 1.492 euros by 1309 GMT, and British Airways was up 3.73 percent at 122.4 pence.
"Despite the fact that Conte initiated these negotiations and was not an impediment to the merger, I think this will help quicken the pace of a deal," said Josep Francesc Valls, an aviation industry expert at Barcelona's ESADE business school.
Negotiations have been stalled by a failure to agree on the two airlines' relative values and as both management teams firefight a severe plunge in passenger traffic that is fuelling consolidation in the industry.
British Airways' market value is approximately $2.2 billion, and Iberia's just under $2 billion, which by simple addition would make the combined entity Europe's third-largest airline by value behind Ryanair and Lufthansa.
DEALMAKER
Vazquez, who takes the reins during the worst airline crisis in living memory, was a tough negotiator as chairman of Franco-Spanish cigarette maker Altadis, squeezing several bid improvements from Imperial Tobacco.
For a profile of Antonio Vazquez, click on
Vazquez takes over a firm that under Conte improved profitability until the current crisis, by slashing costs and its exposure to Spain's cut-throat domestic market in favour of business to Latin America, as well as resolving a series of disputes with pilots and unions.
Iberia added that it had appointed Rafael Sanchez-Lozano, a member of Iberia's executive board since 2007, as managing director and chief operating officer. (Additional reporting Elisabeth O'Leary in Madrid and John Bowker in London, editing by Will Waterman)