UK government in no rush to sell Lloyds stake

2 August 2013

The government has stated it is in no immediate rush to sell off its stake in Lloyds Banking Group.

Shares in the institution leapt after it confirmed it made £2.1 billion ($3.2 billion) in the second-quarter of 2013, compared with a loss of £456 million for the same period in 2012.

Despite the good results, the government does not appear to be moving to sell any of its stake, with deputy prime minister Nick Clegg telling BBC News: "You don't suddenly declare when you've heard the latest figures from a bank ... that you're going to take this very very big step."

Lloyds' shares jumped by eight per cent to 74.1p and this has sparked speculation the government would move to sell its 39 per cent stake in the company.

Chancellor George Osborne has previously stated that 61p would be enough for the government to break even.

In fact, the government bought the shares at an average price of 73.6p during the £20.3 billion bailout during the financial crisis, but the average market price at the time was 61p.

By Asim Shah

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