Lloyds sells its Standard stake

BY JOHN WILLCOCK

Financial Correspondent

Lloyds Bank yesterday sold its 4.6 per cent stake in Standard Chartered almost nine years to the day since it attempted a hostile bid for Standard. Lloyds claimed a profit on the sale of £82m.

By placing the stake with 30 UK institutions via Hoare Govett, Lloyds has signalled its determination to pursue a quality UK retail strategy, following the positive vote by Cheltenham & Gloucester members to accept its £1.8bn bid last Friday, according to analysts.

The sale puts an end to speculation that surfaced regularly over the years since 1986 that Lloyds could renew its interest in Standard, which is well placed in the dynamic Far Eastern economies, or place the stake with another bidder.

Lloyds said it had placed the whole stake at 290p a share and that the sale would benefit its profit and loss account by around £82m.

The sale inevitably removed some of what remained of bid speculation surrounding Standard, whose shares closed down 5p at 294p.

Lloyds said it sold the shares through Hoare Govett, realising a potential profit of over £1m for Hoare.

Tan Sri Khoo , the Singapore-based entrepreneur who was one of the three white knights who helped Standard fight off Lloyds in 1986, is keeping his 15 per cent stake.

Lloyds never admitted that it was holding on to the shares in case of a bid but it was not until the offer for the C&G that it had given up any international ambitions.

Lloyds Bank's chief executive, Sir Brian Pitman, said the board no longer considered there was a strategic advantage in holding the Standard Chartered stake. A Lloyds spokesman added that the bank had held on to the stake as an investment, and that now was a good time to sell.

A spokesman for Standard welcomed the sale: "It's good for Standard because the 5 per cent stake has been overhanging the shares. It's also good for liquidity." The spokesman said that the sale did not affect the status of Tan Sri Khoo's stake at all. Standard announced 1994 profits up 27 per cent to £510m, flattered by a £111m fall in bad debt provisions.

PROMOTED VIDEO
News
Alan Bennett criticised the lack of fairness in British society encapsulated by the private school system
peopleBut he does like Stewart Lee
Sport
John Terry, Frank Lampard
footballChelsea captain sends signed shirt to fan whose mum had died
Life and Style
food + drink
Arts and Entertainment
Rita Ora will replace Kylie Minogue as a judge on The Voice 2015
tv
Life and Style
tech
Life and Style
Alan Turing, who was convicted of gross indecency in 1952, was granted a royal pardon last year
life
News
ebooksAn unforgettable anthology of contemporary reportage
Arts and Entertainment
Sheridan Smith as Cilla Black and Ed Stoppard as her manager Brian Epstein
tvCilla Episode 2 review: Grit under the glamour in part two of biopic series starring Sheridan Smith
Life and Style
life
Arts and Entertainment
Tennis player Andy Murray's mum Judy has been paired with Anton du Beke for Strictly Come Dancing. 'I'm absolutely delighted,' she said.
tvJudy Murray 'struggling' to let Anton Du Beke take control on Strictly
Life and Style
Vote with your wallet: the app can help shoppers feel more informed about items on sale
lifeNew app reveals political leanings of food companies
Sport
David Moyes and Louis van Gaal
football
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

IT Project manager - Web E-commerce

£65000 Per Annum Benefits + bonus: Clearwater People Solutions Ltd: If you are...

Trainee / Experienced Recruitment Consultants

£20000 - £25000 per annum + OTE £40,000: SThree: SThree are a global FTSE 250 ...

Trainee Recruitment Consultant - Soho

£20000 - £25000 per annum + OTE £40000: SThree: As a Recruitment Consultant, y...

Trainee Recruitment Consultants - Banking & Finance

£20000 - £25000 per annum + OTE £40,000: SThree: SThree Group have been well e...

Day In a Page

Secret politics of the weekly shop

The politics of the weekly shop

New app reveals political leanings of food companies
Beam me up, Scottie!

Beam me up, Scottie!

Celebrity Trekkies from Alex Salmond to Barack Obama
Beware Wet Paint: The ICA's latest ambitious exhibition

Beware Wet Paint

The ICA's latest ambitious exhibition
Pink Floyd have produced some of rock's greatest ever album covers

Pink Floyd have produced some of rock's greatest ever album covers

Can 'The Endless River' carry on the tradition?
Sanctuary for the suicidal

Sanctuary for the suicidal

One mother's story of how London charity Maytree helped her son with his depression
A roller-coaster tale from the 'voice of a generation'

Not That Kind of Girl:

A roller-coaster tale from 'voice of a generation' Lena Dunham
London is not bedlam or a cradle of vice. In fact it, as much as anywhere, deserves independence

London is not bedlam or a cradle of vice

In fact it, as much as anywhere, deserves independence
Vivienne Westwood 'didn’t want' relationship with Malcolm McLaren

Vivienne Westwood 'didn’t want' relationship with McLaren

Designer 'felt pressured' into going out with Sex Pistols manager
Jourdan Dunn: Model mother

Model mother

Jordan Dunn became one of the best-paid models in the world
Apple still coolest brand – despite U2 PR disaster

Apple still the coolest brand

Despite PR disaster of free U2 album
Scottish referendum: The Yes vote was the love that dared speak its name, but it was not to be

Despite the result, this is the end of the status quo

Boyd Tonkin on the fall-out from the Scottish referendum
Manolo Blahnik: The high priest of heels talks flats, Englishness, and why he loves Mary Beard

Manolo Blahnik: Flats, Englishness, and Mary Beard

The shoe designer who has been dubbed 'the patron saint of the stiletto'
The Beatles biographer reveals exclusive original manuscripts of some of the best pop songs ever written

Scrambled eggs and LSD

Behind The Beatles' lyrics - thanks to Hunter Davis's original manuscript copies
'Normcore' fashion: Blending in is the new standing out in latest catwalk non-trend

'Normcore': Blending in is the new standing out

Just when fashion was in grave danger of running out of trends, it only went and invented the non-trend. Rebecca Gonsalves investigates
Dance’s new leading ladies fight back: How female vocalists are now writing their own hits

New leading ladies of dance fight back

How female vocalists are now writing their own hits