The authorities in the UK have invited banks to submit their bids as advisers for its plans to privatise state-backed Lloyds and Royal Bank of Scotland.
Chancellor George Osborne has indicated that the government will soon start selling its holding in the Lloyds Banking Group. It is not know as to how much of the Government's 39 per cent stake in the bank will be sold. Some suggest that the government might sell 10 per cent stake, which is valued at about £17 billion, in the bank within this year.
Osborne announced in his Mansion House speech on 19 June that the government is considering selling stake in the Lloyds Banking Group. He did not announce the time frame for the stake sale but said that first block of share will be offered to the institutional investors.
Osborne has also said that the government is aiming to break up the Royal Bank of Scotland into separate entities. The government has an 82 per cent stake in the Royal Bank of Scotland and indicated that the bank might be split into a good bank and a bad bank with troubled assets. The bank had recorded a profit but was facing high level of toxic assets and the government officials have been looking for ways to revive the bank.
The government has said that it will accept bids till 8 July for advisors on the same of stake. Following the news, the shares of Lloyds rose 0.3p to 63.16p while RBS sank 2.3p to 273.5p.
Source: Top News