Lloyds mulls selling 35 percent in TSB IPO: sources
LONDON (Reuters) - Lloyds Banking Group is considering selling a 35 percent stake in TSB when it spins off and lists the new bank on Friday, more than the 25 percent stake planned, people familiar with the matter said.
Lloyds, which is being forced to sell TSB by European regulators, will make a decision later on Thursday, but has signalled to investors it may take up an option to "upsize", the sources said.
Shares are expected to be sold at at least 260 pence a share after decent demand, which is the mid-point of the revised 250-270p price range set on Tuesday, the sources said. That would value TSB at about 1.3 billion pounds, or about 0.8 times its book value.
Lloyds said in its prospectus it planned to sell 125 million shares in TSB, or a 25 percent stake. But it said if there was strong demand the offer size could be increased to 175 million shares, or 35 percent.
(Reporting by Steve Slater, Matt Scuffham and Vikram Sudhedar)
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