subject: Poor Lloyds Shareholders Miss Another Payday [print this page] And today, after a canny dance where the Co-op declared interest in buying the 632 branches that Lloyds is being forced to divest at sums thought to be around 1 billion and then failed to find the requisite resources to seal a deal, it has stolen or been given the wealth of property for just 350 million with a further 400 million in potential instalments over the next 15 years - like a mortgage to buy their own business.
The resulting combined bank will operate on Lloyds IT platform as well, since the Co-op has always struggled in that area.
Peter Marks, Group Chief Executive of The Co-operative Group, said:
"We're delighted to be announcing that we have reached agreement in principle with Lloyds Banking Group on the terms of this important and transformational transaction. This deal would deliver the biggest shake-up in high street banking in a generation. Consequently, we believe this would be a great deal for customers, for the public, for UK banking generally and for The Co-operative Group, in particular."
Lloyds group chief executive Antonio Horta-Osorio said: "In agreeing to move ahead with the Co-operative we provide greater certainty for our customers and for our shareholders.
"In addition to an upfront consideration, we will also get to share in the future financial performance of the combined banking business which will be an effective challenger with a strong customer focus."
"Today's agreement is an important step in meeting our obligations under the mandated sale of our branches.
"We believe the Co-operative will be a good owner for our business, customers and colleagues, and the combined banking business will be a significant competitor on the high street with nearly 10% of today's UK branch network."
Lloyds said that the branches being sold would be rebranded to TSB next summer and would transfer to the Co-op under that brand.
In its Q1 trading statement today, ahead of its AGM, Land Securities, the UK's number one commercial property developer, is making some progress on letting its development pipeline.
It has now let 94% of its City office scheme, One New Change (EC4), but has only just got off the mark at its 20 Fenchurch Street (EC3) scheme where the first letting to Markel International was penned last month and a total of 19% of the space is now spoken for with completion due in April 2014.
In the West End, the 123 Victoria Street development is now 42% let and is due to complete next month, with Jimmy Choo helping out by taking additional space.
The Trinity Leeds 350 million development will open next March, moving to 72% let with another 8% in solicitors' hands. This is a very high profile scheme for Land Securities, which will transform the centre of Leeds, so its success is critical to the firm's reputation.
Robert Noel, CEO said:
"Our focus continues to be to secure income from our developments. We are pleased with progress and continue to see interest from occupiers, despite ongoing uncertain economic news flow. While transactions are taking longer, occupier interest and intent remains firm as businesses seek out efficient space for their future needs."
"We remain confident that the development pipeline offers exceptional opportunity to deliver growth while our active asset management and strong financial base underpin our activities."
