Lloyds shares jump on news of consortium and wealth fund interest

Shares in state-backed bank Lloyds have jumped by around 2.5 per cent on the news that overseas investors could be interested in the company:

It emerged over the weekend that a consortium led by former trade minister Lord Davies is considering investing up to £10bn in the bank, while Singapore’s sovereign wealth fund may put in £4.5bn.

That represents the majority of the government’s stake, which is currently valued at around £17.5bn.

Sources with knowledge of the situation believe offers of between 70p and 75p per share would be snapped up immediately by the government, representing a premium of up to 15 per cent on the current market value of the stock. Such a deal would value the government’s 39 per cent holding at around £20bn.

(Full article)

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