LONDON, Sept 22 (Reuters) - Private equity firm JC Flowershas approached Britain's Lloyds Banking Group about abid for the TSB business that was split from the partstate-owned bank earlier this month, the Sunday Telegraph saidwithout citing sources.
Lloyds, which is now 32.7 percent-owned by the taxpayerafter the government sold a 6 percent stake last week, has beenworking on a stock market listing for TSB next year.
The bank was required to sell more than 600 branches, whichit has rebranded TSB, by European regulators as a penalty forreceiving a 20 billion pound ($32 billion) government bailout inthe 2008 financial crisis.
The Sunday Telegraph said the company had received interestfrom a number of private equity firms, including JC Flowers, forthe branches.
The approaches were believed to be at an early stage, butwere understood to have been taken seriously by Lloyds'management, the newspaper said.
It also said that New York-based private equity group AnaCapmay have expressed interest in some form of trade sale.
A Lloyds spokesman said on Sunday: "We're progressingtowards an IPO of TSB next year but will consider any offersthat would provide greater certainty or value to ourshareholders."
Citigroup and JP Morgan are advising the group on optionsfor TSB.
JC Flowers declined to comment to the newspaper, and was notimmediately available on Sunday.
Lloyds (LLOY)
