* BA CEO sees "strong case"
* Analysts say merger would produce major cost synergies * BA shares 1.3 up percent, Qantas closed 0.4 percent higher
(Adds details, analyst comment, shares)
LONDON/MELBOURNE, Sept 7 (Reuters) - British Airways would be keen on reopening merger talks with Qantas Airways if Australia's top carrier was interested in reviving a deal that collapsed in 2008, according to BA's chief executive.
"We have done the work in our discussions with them (Qantas) two years ago and we know there is a strong case there. It is definitely something that would be interesting in the future if Qantas were like-minded," Willie Walsh told The Australian Financial Review in an interview.
Walsh's comment came two days after BA and Iberia said they had identified 12 possible acquisition targets to chase once their own merger completes, targeting Asia for expansion.
"I would be surprised if Qantas was not one of the 12 because the two together could generate big synergies and Asia is where the growth is," Davy Stockbrokers analyst Stephen Furlong said.
"But Qantas are doing their own restructuring at the moment so I would not read into Walsh's comments too much but anything that would happen would be longer-term."
BA shares, which have jumped 10 percent in the past three months, were 1.3 percent up at 223.50 pence by 0740 GMT, valuing the business at around 2.5 billion pounds ($3.8 billion).
Qantas shares closed 0.4 percent higher at AUS$2.53 on Tuesday, valuing the carrier at about $5.2 billion.
BA's Walsh said he did not expect Qantas Chief Executive Alan Joyce to be keen on pursuing a merger at the moment but added "that may change".
BA and Qantas, then under chief executive Geoff Dixon, held merger talks in 2008, but Qantas called off discussions over a disagreement on the airlines' relative valuations.
Dixon's successor, Joyce, has said Qantas had its eyes on using its strong balance sheet to lead consolidation in the Asia-Pacific region.
"We have not had talks with BA on potential mergers since December 2008," a Qantas spokesman said. "We enjoy a strong relationship with both BA and Iberia, both bilaterally and as OneWorld partners."
Walsh said that BA and Iberia were already looking at opportunities for further airline consolidation.
"I will be surprised if something does not happen within the first year of the merger, he said. (Reporting by Rhys Jones and Sonali Paul; Editing by Ed Davies and David Cowell) ($1 = 0.6511 pound)