Today the share closed at 75.35p. The Government have declared they will not sell below 73.6p therefore giving a discount of approximately 3%. Which institution in their right mind would buy millions of pounds worth of shares at that sort of discount? Maybe a discount of 10% would be interesting but that would take the price down to 67p. Strange!
In my view, the government will not sell shares below 75.5P and the share price will need to be in the range of 78P to 80P before they sell. So, this means they will sell after the DIVIDEND is announced along with final report on 27 February 2015 just 70 days before the General Election. SO, this is the NEXT milestone to watch. There will be a happy ending into this affair as the government will surely need your VOTE.
I'm not sure that the government can sell amounts larger than that, George osborne stated today that they had put in place some sort of trading plan to reduce their holdings in an 'orderly and measured way' which makes me think that they have a prearranged price and size agreement with the institutions at around the 75p mark because why didn't they sell at 80+? This would go someway to explain why a dividend has been announced yet by lloyds or the PRA because that would be game changing news
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