By Ian Walker
LONDON--The British government has reduced its stake in Lloyds
Banking Group PLC (LLOY.LN) by another percentage point to 13.99%,
the latest in a series of small sales of shares in the bailed-out
bank.
Lloyds said Monday the government now owns 9.98 billion shares,
or 13.99% of the bank's voting rights. It previously held 10.69
billion shares.
No price was disclosed for the share sale, which was conducted
on Friday.
Lloyds, the U.K.'s biggest retail bank, was bailed out by U.K.
taxpayers during the financial crisis, with the government taking a
39% stake. The government started selling its shares in Lloyds in
late 2013.
After initially selling portions of Lloyds directly to investors
through accelerated placements, in December the government mandated
Morgan Stanley to gradually sell stock up to the end of June. On
June 1, the program was extended to Dec. 31. The government also
said previously it would launch a share sale that would be open to
retail investors in the next 12 months and that details would be
announced in due course.
Chancellor of the Exchequer George Osborne said in March the
government would sharply reduce its stake in Lloyds in the next
year to raise at least 9 billion pounds ($14.07 billion). He said
Lloyds' return to profit and the resumption of dividend payouts
this year means "we can continue our exit from that bailout." Mr.
Osborne didn't give details on how the share sale would be carried
out.
Write to Ian Walker at ian.walker@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires