Lloyds to sell 25 percent stake in TSB at below book value: sources

Reuters
A pedestrian passes the head office of the Lloyds Banking Group in central London August 5, 2009. REUTERS/Stefan Wermuth

LONDON (Reuters) - Lloyds Banking Group will next week launch the sale of at least 25 percent of its TSB business via a stock market flotation with the pricing expected to be below book value, banking industry sources told Reuters. The amount of stock sold is likely to be less than what some investors had anticipated, according to the sources, reflecting a cooling of investor interest in UK company flotations in recent weeks following a flurry of activity earlier in 2014. Banking industry sources say the IPO, which will happen before the end of June, is expected to value TSB at less than its book value of 1.5 billion pounds, meaning Lloyds will make a loss on the sale. (Reporting by Matt Scuffham)