The Government has capitalised on a rally in Lloyds Banking Group shares following last week’s election result and reduced its stake in the bank to below 20 per cent.
The Financial Times reports the Treasury will say as early as this week that it has cut its stake in Lloyds from 21 per cent to less than 20 per cent, in a move raising about £600m.
In the Budget Chancellor George Osborne said the Government plans to offload a further £9bn in Lloyds shares. It is reported the Treasury is looking at a “tell Sid”-style retail offer similar to the 1986 British Gas advertising campaign.
The FT says UK Financial Investments, which manages the Government’s stakes in banks, is planning to release another tranche of shares before launching a public sale of the remaining stake early next year.
Shares in Lloyds jumped on news of a Conservative majority from 82p to a high of 88p. Lloyds shares are climbing this morning and are currently trading at 87p as at 8.30am.