Lloyds share price bounce back prompts sale restart speculation

Billy Bambrough
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Chancellor George Osborne Visits Business Affected By The Budget
Chancellor George Osborne put the breaks on the Lloyds Banking Group share sale after the shares in banks around the world tumbled (Source: Getty)

A rebound in the value of Lloyds Banking Group shares has sparked speculation the sale of the remaining government stake could still happen this year.

The final tranche were due to be sold in February but the sale was postponed by chancellor George Osborne after worries over of the health of some of the world’s biggest banks wiped some 40 per cent from the value of Lloyds in nine months.

The government wants to sell its holding in the bank for a profit, meaning the price has to be above the 73.6p the Treasury paid. Shares ended on Friday at 73.2p. The coming referendum on Britain’s membership of the EU in June could spark a fresh round of instability in the market however.

“I can’t see the sale happening this side of June, markets are still choppy, and this week we might be off to the races again,” Laith Khalaf, analyst at Hargreaves Lansdown told City A.M.

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