Lloyds May Cut Price to Clinch Branch Sale, Sunday Times Says

Lloyds Banking Group Plc (LLOY) could cut the sale price of 632 bank branches to revive a deal with the Co-operative Group Ltd., the Sunday Times reported, citing unidentified people with knowledge of the situation.

The Lloyds board could reduce by half the price of the Project Verde branches, which the bank must sell by November 2013 to abide by European Union state-aid rules following its bailout, the newspaper said. The branches might have fetched as much as 2 billion pounds ($3.1 billion) last year, according to the report. The board could make a decision when it meets on June 27, the Sunday Times said.

Lloyds spokesman Ed Petter said by telephone that the company wouldn’t comment on the Sunday Times report.

To contact the reporter on this story: Clementine Fletcher in London cfletcher5@bloomberg.net.

To contact the editor responsible for this story: Sara Marley at smarley1@bloomberg.net

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