No takers for Lloyds 632 branches
26 Jul 2011
Lloyds Banking Group, 41 per cent owned by the British government since the credit bailout a couple of years ago, is said to have received just two bids for the 632 branches it has put up for sale.
Only start-up bank NBNK and Co-operative Financial Services are said to have made formal offers, while six potential bidders are in talks with the bank.
Lloyds is not revealing details of the bidding process, but said that there are six potential buyers that have either lodged formal bids by last week's deadline, or are still talking about potential interest in making a bid.
Lloyds is being forced to divest the branches by the European Union in return for the £20 billion it received from the UK government during the global financial crisis of 2007-2008. The British government currently owns 43 per cent of Lloyds.
Lloyds is selling off 632 branches, which comprise the TSB and Cheltenham & Gloucester brands, among others and associated accounts and about 19 per cent of Lloyds' mortgage book.
The disposal, known as "Project Verde", is expected to be completed by November 2013.
According to analysts, the sale has not attracted potential suitors since the branches being auctioned have loaned out more money than they have taken in through deposits, creating a funding gap of up to £32 billion.
