Who will buy LLoyds and Northern Rock

Chadsman

CityAM says

Virgin Money to make second Northern Rock bid

http://www.cityam.com/news-and-analysis/virgin-money-make-second-northern-rock-bid
...apparently final offers have to be this week.

Thrugelmir

Lloyds may attempt to float the Verde branches as a new bank.

Wonder if this is being muted with Government support.

Chadsman

CityWire says

Lloyds plans to float retail bank business

http://www.citywire.co.uk/money/lloyds-plans-to-float-retail-bank-business/a535622

MoneyMarketing says

Lloyds considers floating bank branches

http://www.moneymarketing.co.uk/regulation/lloyds-considers-floating-bank-branches/1040080.article
...they also say NBNK is expected to make a bid for NR but would only go through with the deal if they were successful in the Lloyds auction.

For NBNK it could be either both of NR and Verde or neither of them.

pqrdef

Chadsman wrote: »

For NBNK it could be either both of NR and Verde or neither.

Hmm. Lloyds shareholders would not be best pleased if Lloyds were pushed into accepting a poor bid just because Osborne was embarrassingly bullish when he announced the NR sale.

sabretoothtigger

A float might work because the company would be a continual take over target. Lloyds would make money on the shares they retained in it.

Santander was going to float off their UK branches as a separate share on the LSE, in many countries their subsidiary is operated as separate and valued as separate shares.
They havent because of such low share values now but if Lloyds is in a corner it might be best rather then an outright sale

Thrugelmir

sabretoothtigger wrote: »

A float might work because the company would be a continual take over target. Lloyds would make money on the shares they retained in it.

Existing shareholders would also receive shares as part of the demerger.

sabretoothtigger

Sounds good, finally lloyds pays some income of a sort? Considering the gloomy market, I think they'd want people to buy up more like a rights issue

Ark_Welder

If LBG were to float the business then they might not be able to keep many shares in it - they might be seen as retaining too much of an interest. And if the business cannot be sold at the price being offered by NBNK then I wouldn't expect it to move to much of a premium to that price: if the business was worth a premium then NBNK would likely to be prepared to pay it - why wait until it has gone up in price? At least, in the short-term. Question might be, how long is the long-term...?

Thrugelmir

Ark_Welder wrote: »

If LBG were to float the business then they might not be able to keep many shares in it

Coupled with a rights issue at the same time. Then NBNK could dilute its shareholding.

meatandtwoveg

How does C & G fit into all of this?