LONDON, July 6 Former Standard Chartered
chief executive Mervyn Davies is forming a consortium
of sovereign wealth funds and financial institutions to buy as
much as half of Britain's 20 billion pound ($29.77 billion)
stake in Lloyds Banking Group, Sky News reported.
Davies approached Britain's Treasury several months ago
about his plan to buy as much as half of the British taxpayer's
39 percent share in Lloyds, Sky said on Saturday citing
U.S. private equity firm Corsair Capital, where Davies is a
partner, will be part of the consortium but will not buy the
stake on its own, Sky said, adding the deal will be structured
to acquire the Lloyds stake close to the current share price.
Shares in Lloyds closed at 6463 pence on Friday, valuing the
bank at about 47 billion pounds.
Sky said investors such as Standard Life Investments
had been approached about participating in the deal, while banks
HSBC and JP Morgan were helping Davies structure and
finance the transaction.
The broadcaster said the exact size of the stake the
consortium would buy was unclear but that it was likely to be
much larger than 10 percent or a quarter of the British
Lloyds, Corsair Capital and Standard Life Investments
declined to comment. Britain's Treasury was not immediately
available for comment.
More than a dozen top banks are finalising plans to run the
20 billion pound share sale in part-nationalised Lloyds, in what
is one of the most prestigious British deals in recent years,
and need to pitch by Monday to handle the government's stake