Lloyds Banking Group Cuts Verde Price To Clinch Sale - Report

Lloyds Banking Group PLC (LYG) has cut the sale price of its "Project Verde" network of 632 bank branches to clinch a deal with the Co-operative Group, the Sunday Times reported.

The network had been expected to fetch between GBP1.5 billion ($2.3 billion) and GBP2 billion when it was put up for sale last year.

But with markets in turmoil and bank shares under pressure, the Lloyds board may now be willing to cut the price by as much as 50%, the paper said. It did not identify its sources.

The European Commission ordered the bank to sell the branches in return for receiving state aid during the financial crisis. This has to be completed by November 2013.

A Lloyds spokeswoman said: "We don't comment on market speculation. Co-op remains the preferred bidder."

Another group interested in the Verde business is NBNK Investments PLC (NBNK.LN).

Earlier this month, NBNK said that its talks with Lloyds about its offer to buy the branches have been encouraging after outlining its plans to the Financial Services Authority, which has given its tentative backing.

Newspaper: http://www.timesonline.co.uk

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