13th Aug 2014 10:08
LONDON (Alliance News) - UK Chancellor George Osborne will rule out a pre-election sale of Lloyds Banking Group PLC shares to retail investors, Sky News reported on Wednesday.
Sky News said it has learnt that the Treasury has decided that stock market volatility and the time needed to conduct a public share sale would create an "unacceptable level of risk for ministers to undertake a mass retail offering."
Sky News also reported uncertainty over Lloyds' plans to restart dividend payments, Bank of England stress tests, and next month's Scottish independence referendum as factors behind the decision.
The report said that it is "conceivable" that Osborne will continue to sell shares to City institutions ahead of the election, but that the news on the retail front means the government is unlikely to complete the return of Lloyds to private hands ahead of the general election next May.
The state still holds a 24.90% stake in Lloyds.
Sky News said that the Treasury and Lloyds declined to comment on the report.
Lloyds shares were Wednesday quoted up 1.3% at 74.20 pence.
http://news.sky.com/story/1317904/osborne-rules-out-pre-election-lloyds-retail-offer
By Samuel Agini; [email protected]; @samuelagini
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