Jim Armitage: RBS, not Lloyds, will need a discount to tempt buyersComments Off on Jim Armitage: RBS, not Lloyds, will need a discount to tempt buyers
Gordon Brown’s sale of the country’s gold reserves was a famously terrible trade.
But at least he can say he had no way of knowing he was selling at what would soon prove to be a stupidly low price.
The same can’t be said of the discounted sale of Lloyds shares to the public.
Here, it is abundantly clear that selling the taxpayer’s stock at a discount of £100 million is utterly unnecessary.
Pension funds and other institutions are more than happy to pay full price, as today’s news that they’ve snapped up a further half a billion pounds’ worth at the going rate proves.
Now the Treasury is readying its share structure for the sale of the next chunk of still-troubled Royal Bank of Scotland.
The shares have gone nowhere since the first lot went in August.
That suggests it’s RBS, not Lloyds, that will need a discount to tempt the buyers.
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