NEW YORK (TheStreet) -- Shares of Lloyds Banking Group (LYG) fell 1.29% to $4.97 in afternoon trading Tuesday on news the British financial institution could sell a second round of shares in TSB Banking Group, in which it owns a majority share, according to Reuters.
TSB is about to enter a "closed" period prior to its third-quarter earnings on Oct. 24, so an offer could come this week, though the timetable is not certain, a source told Reuters.
Lloyds sold a 38.5% stake in Britain's seventh-largest lender in June in a deal that values TSB at $2.1 billion. The offering was 11 times oversubscribed and earned strong demand from U.S. and U.K. investors.
Lloyds agreed not to sell any shares for 90 days after the first sale, but the lock-up period expires when the market closes Tuesday. The financial institution could sell its TSB shares starting on Wednesday and will have a short window of time to make a sale prior to TSB's closed period.
European regulators forced Lloyds to sell the 631 TSB branches as a condition of giving government aid to the banking group during the financial crisis. As a result, Lloyds must sell all of TSB by the end of 2015.
More than 15.3 million shares had changed hands as of 1:03 p.m., compared to the average volume of 2,636,980.
Separately, TheStreet Ratings team rates LLOYDS BANKING GROUP PLC as a "hold" with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation: