Partner Article

NBNK submit new bid for 632 Lloyds branches

A new British banking venture has made a renewed bid for 632 Lloyds retail bank branches.

NBNK has proposed an “alternative demerger structure”, and promised to underwrite 100% of the package of branches being sold.

This would mean that all shareholders, including the Government, would have the option of receiving cash or shared in a new banking group.

The Co-operative has previously been named as the preferred bidder by the stricken bank, but Co-op chiefs have since cast doubt on the deal, due to economic and regulatory issues.

Despite this, Lloyds says it is still in exclusive talks with the Co-operative.

Lloyds Banks is 40% owned by the UK government, and has until November 2012 to sell the branches in order to meet European Commission competition rules.

A spokesperson from Lloyds said that they have received a letter outlining NBNK proposals, but continue to negotiate with the Co-op. They are also preparing for a divestment through an initial public offering.

This was posted in Bdaily's Members' News section by Ruth Mitchell .