Virgin is unmoved by Lloyds branch sale sweeteners

LLOYDS has failed to attract serious interest from Virgin Money in its branch sale despite proposals to sweeten the deal in recent weeks.

It is understood that despite reports that Virgin was preparing to bid on the 632 branches being sold before a second deadline at the end of September, it is unlikely to make a move.

In the past month, Lloyds has presented different options for bidders looking to close the £30bn funding gap in the branches, including one proposal to boost deposits by £5bn through a concerted marketing campaign.

But Virgin has not so far been moved, despite staying in contact with the bank over the sale. It is instead concentrating on its bid for Northern Rock.