Lloyds share price: Share sale unlikely before dividend approval

on Oct 9, 2014
Updated: Oct 21, 2019

iNVEZZ.com, Thursday, October 9: The UK government is unlikely to sell any more of its remaining 25 percent stake in until the bailed-out lender is cleared to pay dividends again, Reuters today reported.

Britain raised £7.4 billion through two separate sales of Lloyds shares to pension funds and insurers in September 2013 and March 2014.
According to banking and political sources, without regulatory approval to pay dividends, the lender’s shares could not rise to a level that would enable UK Financial Investments (UKFI) — the body which manages the government’s stakes in bailed-out banks — to convince Britain’s finance ministry that another sale would be in taxpayers’ best interests.

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Lloyds has signalled that it wants to pay a dividend for 2014, which would mark the first payout to shareholders since the financial crisis. However, analysts at Macquarie Group (ASX:MQG) warned last week that the bank might need to postpone these plans, as “there’s a real chance” it failed the Bank of England’s (BoE) stress tests this year ().

**Analysts on Lloyds share price**
As of 14:55 BST, the Lloyds’ stock was changing hands at 75.50p — 0.28 percent up intraday.

The bank was one of the best performers in the FTSE 100 index in 2012 and 2013 but has fallen by 12 percent since January — leading Britain’s Finance Ministry to abandon a planned sale to retail investors in September.

Of the 25 analysts projecting 12 month price targets for the FTSE 100 lender for the Financial Times, the median target is 89.00p, with a high estimate of 115.00p and a low of 550.00p.
According to the FT, as of 3 October 2014 the consensus forecast amongst 51 polled investment analysts covering Lloyds has it that the company will outperform the market.
**As of 17:56 BST, buy Lloyds shares at 75.50p.**

**As of 17:56 BST, sell Lloyds shares at 75.48p.**


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