This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Lloyds Share Sale Postponed as Market Sinks

Stocks in this article: LYG

LONDON ( The Deal) -- The British government has postponed plans to sell shares in Lloyds Banking Group (LYG) to retail investors this September, in a move that may mean the public will not get a look-in at all before next May's general election.

The decision leaves it open to the Treasury to sell shares to institutional investors, but a voter-pleasing sale to the public is now considered too difficult to pull off until after the bank resumes paying the dividends it was forced to suspend after a government bail-out in 2008.

The British government still holds about 25% of the bank, despite two institutional placings this year that reduced the holding from about 43%. The bank recently applied to the Bank of England for permission to restart paying dividends, but no longer expects to do so before next year, most likely also in May.

The decision comes after the stock market's Spring rise lost momentum over the summer as the tensions with Russia over Ukraine continued to mount. The government had hoped for Lloyds' share price to rise to near the 84 pence at which the government would stand a chance of recouping both the cost of the original bail-out and the accumulated cost of borrowing the cash for the rescue.

Lloyds shares are currently trading at 74.3 pence, below the 75.5 pence offer price of the government's 4.2 billion euro sale last March. A sale to the public would have to be at an even larger discount to that price than an institutional placing to be attractive.

The Treasury has so far ruled out a retail sale only to the end of the year. However, the political timetable as well as Lloyds' own financial calendar would make it hard to find a suitable slot between the Chancellor of the Exchequer George Osborne's final pre-election budget in March and the election itself in early May.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,959.44 +154.64 0.87%
S&P 500 2,078.54 +7.89 0.38%
NASDAQ 4,781.4240 +16.0440 0.34%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs