Lloyds plans IPO for branches as sale kicks off
Thursday 09 June 2011
Lloyds Banking Group is ramping up plans to float more than 600 of its branches as a new bank on the stock exchange if prices offered by bidders are too low.
The bank appointed Paul Pester last month to run the business during the sale process with a management team below him. It is understood Mr Pester is in line to be chief executive of the new bank if it is sold off by Lloyds in an initial public offering (IPO).
Lloyds' preferred option is to sell the network to a potential trade buyer such as Virgin Money but the bank is running a dual-track process with an IPO as a serious option. Lloyds is set to kick off the sale process tomorrow by sending out an information memorandum to potential bidders. It wants serious offers in by the end of July, Lloyds' chief executive, Antonio Horta-Osorio, said yesterday.
It is selling the TSB name as part of the sale and the historic brand, bought by Lloyds in 1995, could be revived for the new bank. Lloyds TSB will be known as Lloyds Bank on the high street after the branch network is sold.
Mr Pester is not a high-profile figure but he has worked in senior jobs at a number of new entrants and challengers to the main banks.
He joined Lloyds in September from Santander, whose former chief executive was Mr Horta-Osorio. At Santander Mr Pester was responsible for managing Bradford & Bingley and its integration with Abbey and Alliance & Leicester.
He also spent five years as chief executive of Virgin Money and helped to set up Metro Bank, the new lender in the London metropolitan area.
Lloyds was forced by the European Union to sell the network of 632 branches, which bring together the Cheltenham & Gloucester business, Lloyds TSB Scotland and more than 250 Lloyds TSB branches in England and Wales. The network will have a market share of almost 5 per cent and will be the biggest new challenger in UK banking for decades.
- 1 Sofyen Belamouadden murder: The inside story of a crime that horrified Britain
- 2 How to turn off/stop 'seen by' on Facebook: Disable it to make your chats seem less passive aggressive
- 3 Company breaks open Apple Watch to discover what it says is 'planned obsolescence'
- 4 'We're not heroes, just tourists': Swedish police officers on holiday stop vicious assault on New York subway
- 5 Buckingham Palace guard who attacked passers-by in 'most most violent piece of CCTV footage' police officer had seen walks free
Top 20 misconceptions people believe are true
Sofyen Belamouadden murder: The inside story of a crime that horrified Britain
'We're not heroes, just tourists': Swedish police officers on holiday stop vicious assault on New York subway
Nepal earthquake: More than 1,100 killed across four countries and in Mount Everest avalanche
Australian student Tommy Connolly, 23, adopts his pregnant, homeless 17-year-old cousin to give her a chance at 'a better life'
The sickening truth about food banks that the Tories don't want you to know
Migrant boat disaster: Ukip candidate mocks victims in sickening Twitter post
Nigel Farage wants the BBC to stop making programmes like Doctor Who, Strictly Come Dancing, and Top Gear
Global warming: Scientists say temperatures could rise by 6C by 2100 and call for action ahead of UN meeting in Paris
General Election 2015: Britain would become a 'communist dictatorship' under Ed Miliband and Nicola Sturgeon, claims wife of Michael Gove
Rupert Murdoch berated Sun journalists for not doing enough to attack Ed Miliband and stop him winning the general election
iJobs Money & Business
£50000 - £55000 per annum: Ashdown Group: Business Analyst - Financial Service...
£18000 - £23000 per annum + OTE £45K: SThree: At SThree, we like to be differe...
£20000 - £25000 per annum + competitive: SThree: Did you know? SThree is the o...
£22000 - £24000 per annum: Recruitment Genius: This is an opportunity to join ...