By Steve Slater
LONDON, April 24 (Reuters) - The planned sale of more than600 UK bank branches by Lloyds Banking Group to theCo-Operative Group has fallen through, people familiar with thematter said.
Confirmation of the collapse of the deal is expected to comeon Wednesday morning, the sources said.
The deal has long been in danger, and is likely to leaveLloyds' most likely option as a flotation of the branches sometime in 2014. European regulators have demanded Lloyds sell thebranches as a cost of taking a state bailout.
Lloyds (LLOY)