Lloyds: What Should Investors Do?

The Government has made a profit of £61 million from selling a 6% stake in Lloyds. Should investors sell up or stay put?

Emma Wall 17 September, 2013 | 9:55AM
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US institutional investors and hedge funds are poised to snap up a stake in Lloyds Banking Group (LLOY) at 75p a share. 

The Government has sold off a slice of its ownership of Lloyds bank - taking its stake from 38.7% to 32.7%. The Government received a stake in Lloyds in October 2008 when it bailed out the failing back to the tune of £21 billion following the disastrous merger with rival bank HBOS. 

The sale is estimated to make the Government a profit of £62 million - although it will be recorded as a paper profit of £586 million as the Lloyds shares are listed in the public purse priced at 61p. The sale has raised £3 billion.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Lloyds Banking Group PLC47.31 GBX0.97Rating

About Author

Emma Wall  is former Senior International Editor for Morningstar

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