LONDON, April 21 (Reuters) - U.S. financial services companyAmeriprise Financial is lining up an 800 million pound($1.22 billion) bid for Lloyds Banking Group's ScottishWidows asset management arm, the Sunday Times reported.
Last week Reuters reported that Lloyds had hired advisorsfor a possible sale of Scottish Widows Investment Partnership(SWIP), as it prepares for a likely regulatory demand to raisemore capital.
The Sunday Times said analysts believe Minneapolis,Minnesota-based Ameriprise, which owns British fund firmThreadneedle Investments, would lay off most of SWIP'sEdinburgh-based employees if it wins the auction.
Both Ameriprise and Lloyds declined to comment.
UK banks are having to consider further disposals after theBank of England said they must raise a total of 25 billionpounds of extra capital by the end of the year, to be in aposition to absorb future loan losses.
Lloyds (LLOY)