LONDON, July 8 (Reuters) - Lloyds Banking Group shares rose more than 2 percent early on Monday after reportsthat overseas investors were considering buying up to half ofthe government's stake in the bank.
Former Standard Chartered chief executive MervynDavies is forming a consortium of sovereign wealth funds andfinancial firms to buy up to 10 billion pounds ($14.9 billion)in Lloyds, Sky News reported. Davies is a partner in U.S.private equity firm Corsair Capital, which would be part of aconsortium and not a buyer on its own, Sky said.
Britain is keen to start selling its 39 percent holding inLloyds this year, and banks have until Monday to pitch for thejob of handling the sale.
The government has received a number of tentative enquiriesabout the sale, including from overseas investors, a personfamiliar with the matter said on Sunday.
The Sunday Times said Singapore state investor Temasek had made a preliminary approach about buying a 4.5billion pound stake in Lloyds, although industry sources saidthere had been no direct approach to the British government.
By 0720 GMT Lloyds shares were up 2.3 percent at 66.1 pence,outperforming a 0.9 percent rise by the STOXX Europe 600 bankingindex and putting the shares comfortably above the 61.2plevel the government regards as its breakeven price. The shareshit 66.5p on Friday, their highest level since February 2011.($1 = 0.6719 British pounds) (Reporting by Steve Slater; editing by Jane Baird)
Lloyds (LLOY)