NBNK Investments has submitted a revised proposal to Lloyds Banking Group to acquire hundreds of branches, as questions remain over the bid from the Co-op Bank.
The offer from NBNK would see shareholders given the choice of cash or shares in what it describes would be “the UK’s only major, listed organisation solely dedicated to retail and SME banking”.
NBNK, chaired by former Lloyd’s chairman Peter Levene, believes the offer will ensure there is no price uncertainty or additional costs associated with a separate listing of the “Project Verde” business.
The investment group added no redundancies would be made, no branches closed and would become the first “no bonus” bank.
Levene says: “NBNK offers none of the downsides to Lloyds of a standalone IPO.
“We have the right board, management, strategy and experience to run and grow a large scale banking operation and achieve our plans for Verde. Our shareholders are strongly supportive of our objectives.”
The group has joined the fray after doubts appeard over the bid from the Co-operative group.
A Lloyds spokeswoman says: “The Group acknowledges receipt of a letter outlining an indicative revised proposal from NBNK. However, we continue to negotiate solely with the Co-Operative Group and are continuing to prepare for a divestment through an initial public offering.”
NBNK was a previous suitor to Northern Rock before it was acquired by Virgin.