Lloyds Banking Group PLC (LLOY.LN), the U.K. bank that is partly owned by the U.K. Government, said Thursday it is in discussions with Rathbone Brothers PLC (RAT.LN) regarding the possible sale of assets relating to certain non core private client discretionary investment management activities, principally the Bank of Scotland Portfolio Management Service.

MAIN FACTS:

-Discussions are ongoing but there is no certainty that a transaction will proceed.

-By London Bureau, Dow Jones Newswires; Contact Ian Walker; +44 (0)20 7842 9296; ian.walker@dowjones.com