'Hammer, hammer, hammer': Canada lobbies U.S. before NAFTA talks
CINCINNATI, Ohio In the baking Ohio heat Canada's trade minister is trying to save NAFTA, one encounter at a time.
* IPO to be priced at between 0.7-0.9 times book value
* Valuation set to be between 1.12-1.44 bln stg (Adds further details; Lloyds, TSB decline to comment)
By Matt Scuffham
LONDON, June 8 Lloyds Banking Group will on Monday price the sale of a 25 percent stake in its TSB IPO-LLTS.L business at below its book value, according to industry sources.
Lloyds will publish the pricing and prospectus for an initial public offering of TSB shares on Monday, the sources said. The sale, which will take place before the end of June, will value TSB at between 0.7 times and 0.9 times its book, or net asset value of 1.6 billion pounds ($2.7 billion), the sources said, giving it a valuation of between 1.12 billion and 1.44 billion pounds.
Lloyds Banking Group and TSB both declined to comment.
Lloyds, 25 percent-owned by the government, is obliged by European competition regulators to sell the 631 branches which now form TSB as a condition of receiving state aid during the financial crisis five years ago and therefore must now sell the whole of TSB by the end of 2015.
Banking industry sources expect Lloyds to sell TSB in three or four tranches, just as part-nationalised rival Royal Bank of Scotland did with the sale of its Direct Line insurance business, which was sold off in stages with each tranche priced higher than the previous sale.
The initial offer price for TSB reflects a cooling of investor interest in UK company flotations in recent weeks following a rush of activity earlier in 2014. Clothing chain Fat Face pulled its planned London listing last week while shares in insurance to holidays firm Saga have fallen below their IPO price.
Nevertheless, Saga's private equity owners are pressing ahead with plans to float its sister firm, roadside recovery services and insurance firm the AA.
And TSB's public share sales will still fetch more than Lloyds' initial plan to sell the branches to the Co-operative Bank for 750 million pounds. That deal collapsed when a 1.5 billion-pound funding gap at the Co-op emerged.
The bank already has 4.5 million customers and 6 percent of bank branches in the UK, making it Britain's seventh-largest retail bank and giving it a headstart over other new entrants.
($1=0.5956 British Pounds) (Editing by Greg Mahlich)
NEW DELHI At midnight on Friday, India will introduce nationwide goods and services tax with Prime Minister Narendra Modi taking centre-stage in parliament for what will be the country's biggest tax reform in the 70 years since independence from British colonial rule.