Lloyds mulls IPO of Scottish Widows

Lloyds Banking Group has dismissed as "rumour" reports it may sell part of its fund management business in a bid to raise cash following its bailout by the UK Government.

According to Bloomberg, individuals "familiar" with the banking giant's plans said it is exploring a possible initial public offering (IPO) of its money management and insurance division Scottish Widows. The note added the bank may also sell Clerical Medical, which would run contrary to its insistence last year the investments and pensions provider is not for sale. It is understood the September 2008 takeover of UK mortgage lender HBOS is placing considerable pressure on Lloyds to dispose of assets as losses from the acquisition increase. Lloyds posted a £3.1bn first-half loss, wit...