This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-27583942
The article has changed 6 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Lloyds Bank announces TSB flotation | Lloyds Bank announces TSB flotation |
| (35 minutes later) | |
| Lloyds Banking Group is to float a 25% stake in its TSB business on the London stock market. | |
| The sale is set to take place next month and there will be an opening for ordinary investors to buy shares. | |
| TSB is being floated to meet European Commission competition rules regarding state aid. Lloyds was bailed out by the UK taxpayer in 2008. | TSB is being floated to meet European Commission competition rules regarding state aid. Lloyds was bailed out by the UK taxpayer in 2008. |
| The Co-operative Bank was set to buy TSB but did not go ahead after a £1.5bn black hole emerged at the Co-op Bank. | The Co-operative Bank was set to buy TSB but did not go ahead after a £1.5bn black hole emerged at the Co-op Bank. |
| Lloyds must sell its remaining stake in TSB before the end of 2015. | |
| 'Important step' | |
| Shares will be offered to institutional investors and to intermediaries for ordinary investors. The bank will give ordinary investors one free share for every 20 shares they buy (up to the value of £2,000) and hold for a period of one year after the float. | |
| António Horta-Osório, Lloyds Banking Group chief executive, said: "The decision to proceed with an initial public offering of TSB is an important further step for the group as we act to meet our commitments to the European Commission. | |
| "TSB has a national network of branches, a strong balance sheet and significant economic protection against legacy issues," he added. | |
| The bank has 631 branches and 4.5 million retail customers, making it the seventh largest retail bank in the UK. | |
| TSB will continue to use Lloyds banking operations and computer systems, the bank said. | |
| Banking analyst Chris Skinner told the BBC that TSB was "really a new brand on an old horse". | |
| TSB is expected to be valued at about £1.5bn, Mr Skinner added. |