Lloyds, which is 25% owned by the taxpayer, must sell its 631 TSB high street bank branches in order to meet requirements set by the European commission at the time of its government bailout.
Lloyds will attempt to drum up interest for the sale of a 25% stake that would value TSB at around pounds 1.5bn by offering retail investors bonus shares. But "flotation fatigue" is a concern for its owner as a string of high-profile floats have failed to excite investors. The partial sale of TSB, whose logo returned to the high street last autumn, will bring direction to a business whose future has been clouded in uncertainty, including a failed attempt to sell the branches to the Co-operative bank.
Lloyds missed the first deadline imposed by the commission of
Lloyds and TSB declined to comment.
TSB was founded in 1810 in Dumfriesshire by the Reverend
Lloyds' chief executive,
Lloyds is keen to get the sale under way before publishing its results on 31 July, avoiding the August lull and complications that might arise in September, when a sale could clash with the referendum on Scottish independence. The bank hopes to sell between 15% and 30% of its shares to ordinary investors, but also hopes TSB's untainted name will be a draw for big institutional investors on both sides of the Atlantic.
Reuters reported last week that TSB's chief executive,
Last week clothing chain Fatface scrapped plans to list its shares on the stock exchange, blaming market conditions. Then the Saga group made a disappointing debut on Friday, with shares launching at the bottom end of the range amid weaker than expected demand.
The stake in TSB that Lloyds is expected to offer today - but 'flotation fatigue' is a concern for
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