View more on these topics

Lloyds ends exclusivity agreement with Co-op

Lloyds Banking Group has ended its exclusivity agreement with the Co-operative Group over the sale of its 632 bank branches.

Co-op entered into exclusive talks with the state-backed bank over the sale in December although doubts over the deal surfaced when the Co-op admitted to there being “economic and regulatory” hurdles in the way of the sale.

Co-op is still LBG’s preferred bidder for the branches, known as project Verde, but the talks are no longer exclusive.

Earlier this month, NBNK Investments, chaired by former Lloyds chairman Peter Levene, submitted a revised proposal for the branches. NBNK had previously lost out to Co-op in the race for the branches.

LBG is forced to sell the branches in return for being bailed out by the Government and has until November 2013 to do this.

A statement published today says: “The Group continues to have productive and meaningful discussions with the Co-operative Group, its preferred buyer for the Verde business.

“However, LBG is no longer holding these discussions under an exclusivity agreement. Given the renewed interest in the Verde business shown by NBNK, LBG will now consider detailed discussions with other parties but only once LBG is satisfied that any proposal is likely to achieve the appropriate regulatory clearances and offers greater value and/or certainty to LBG shareholders against its alternative option of an Initial Public Offering.”


Vote to increase QE justified, says MPC’s David Miles

Bank of England Monetary Policy Committee member David Miles says his decision to vote for more quantitative easing earlier this month looks justified due to weakness in the economy. Miles was the only member of the MPC to call for an expansion of monetary policy earlier this month. Fellow MPC member Adam Posen voted to […]

HSBC to raise new-build LTV to 85% in next few months

HSBC is planning to increase the maximum LTV on new-build mortgages from 75% to 85% LTV in the next couple of months. The lender believes valuations in the market have stabilised and it is now safe to raise its LTV. Q1 was HSBC’s best ever quarter as it lent £4.9bn overall and £1.2bn to first-time […]


News and expert analysis straight to your inbox

Sign up