This does seem to be covered on lots of outlets, particularly investment based ones. Especially since the positive IAG financials and the poor easyJet share price.

I do however feel the Competition authorities would be less then impressed.

If however a deal were to be struck it could be quite interesting.

There would most likely be a forced sale of some parts of the business to satisfy Competition concerns, such as the amount of Gatwick slots. However much of the business is not London based and so may not be a problem, while IAG maybe interested would BA?
Long term, would the easyJet name remain given the fees payable to the EasyGroup. Or would this be the start of BA Express (orange speedmarque anyone?) Or some hyper-steroid boost to BA Euroflyer or Vueling UK?
EZY also has many non UK based opps, these could be folded into Vueling / other IAG group companies / sold.

But in my view any move would be instigated by others with BA / IAG bidding only to protect UK share and/or preventing another party such as Wizz gaining further UK traction.