Jim Armitage: RBS, not Lloyds, will need a discount to tempt buyers

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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.

Source Article from http://www.standard.co.uk/business/jim-armitage-rbs-not-lloyds-will-need-a-discount-to-tempt-buyers-a3086861.html

October 9, 2015 |
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