UPDATE 2-BA merger hopes rise as Iberia names new boss

* 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 pct on news

By Ben Harding

MADRID, July 9 (Reuters) - The chairman of Spanish airline Iberia (IBLA.MC) stepped down on Thursday and was replaced by proven dealmaker Antonio Vazquez, an appointment seen as boosting chances of a merger with British Airways (BAY.L).

Analysts said the arrival of Vazquez, who oversaw the sale of Altadis to Britain's Imperial Tobacco (IMT.L) 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.