The Treasury is considering a deal to sell its remaining 7 per cent stake in Lloyds Banking Group to institutional investors early next year.
The Financial Times reports that while no decision has been made, the move would see the taxpayer capitalise on a recent rise in bank shares and allow the Government to sell out of the bank with a high-profile deal.
Last week the Treasury reduced its stake in Lloyds to just below 7 per cent via a trading plan which drip-feeds Lloyds shares into the market.
One of the options for a Lloyds disposal is to let the trading plan run on until the stake reduces to zero, but sources suggest an alternative would be to look at selling the remaining stake in one go once the Government’s holding is reduced to about 5 per cent.
The Treasury and Lloyds declined to comment.