UK gears up for sale of Lloyds stake

Britain could soon start selling its stake in Lloyds Banking Group after the country’s largest retail bank accelerated a turnaround and flagged a return to payouts for shareholders.

Prime Minister David Cameron is keen to show that Britain’s part-nationalised lenders are on the mend, and a profitable sale of part of the state’s 39% stake in Lloyds would allow him to claim at least partial success.

The government could sell a tranche of about £5bn (€5.8bn) — or a quarter of its stake — to institutional investors, such as pension and hedge funds, in the next week, sources said.