LONDON, June 19 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
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)