It wouldn't suprise me if Virgin was one of the 12 on BA's list. Would fit the profile IMO.
Qantas has already dismissed the chance of a merger, whereas Virgin have said they would be open to the idea (see article 1), and BA has said that there are low cost airlines on that list.
http://www.theaustralian.com.au/business/aviation/virgin-merger-on-cards/story-e6frg95x-1225871311977
http://www.theaustralian.com.au/business/aviation/british-airways-eyes-12-potential-acquisition-targets/story-e6frg95x-1225914574753
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