U.S. financial services company Ameriprise Financial Inc. (AMP)
is lining up an 800 million pound ($1.22 billion) bid for the
asset-management unit of Lloyds Banking Group PLC (LYG), The Sunday
Times reports without citing sources.
Lloyds has hired advisers from Deutsche Bank AG to review the
future of Scottish Widows Investment Partnership, which has around
GBP150 billion of funds under management. The move comes as the
bank looks to simplify its business structure and bolster its
capital reserves.
The review is expected to lead to an imminent sale, the
newspaper says. It adds that Ameriprise Financial is leading a
group of bidders for the business.
Since being bailed out by taxpayers, Lloyds has looked to
retrench to its U.K. retail banking roots. In a 2011 business
review, Lloyds said that SWIP was a key part of its business.
However, pressure has mounted on U.K. banks to shore up their
balance sheets. In March, the 39%-government-owned bank, sold a 20%
stake in St. James's Place PLC (STJ.LN), as it looked to cash in on
the wealth-management group's recent share rally.
Ameriprise Financial wasn't immediately unavailable for
comment.
Newspaper Web site: http://www.timesonline.co.uk
Write to London Bureau at generaldesklondon@dowjones.com
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