Lloyds to weigh disposals

Lloyds Banking Group Plc may sell part of its fund management business, including a possible initial public offering of Scottish Widows, to raise cash after its bailout, two people familiar with the talks said. Lloyds is in the early stages of assessing options for Scottish Widows, its 194 year-old money management and insurance division, said the people, who declined to be identified because the talks are private. The bank may also sell Clerical Medical, a provider of investment products and pensions, the people said.

The takeover of UK mortgage lender HBOS Plc, announced last September, is putting pressure on Lloyds to dispose of assets as losses from the acquisition increase. Lloyds posted a £3.1 billion ($5.3 billion) first-half loss, with HBOS accounting for about 80 percent of the bank’s £13.4 billion of bad-loan provisions.