Of Special Interest
29th July 2011
Hugh Osmond is 3rd bidder for Lloyds branches
Hugh Osmond is said either to be considering making a bid for the Lloyds Bank branches for sale or to have made a preliminary bid depending on the media source. The Independent Newspaper reports that he has made a formal approach to Lloyds Banking.
Osmond is a serial investor known originally for forming Pizza Express in the UK. He also invested in Punch Taverns. It is thought that he plans to use Sun Capital, an investment vehicle he in involved with. Sun Capital is planning a £500m IPO sometime this year.
Lloyds Banking claimed there were six credible proposals to buy the branches for sale. However it is also suggested that the bank only got two indicative bids by the brought forward cut off date of 18th July. It is believed that Lloyds wanted a contract in place before the Independent Banking Commission issued its final report in order to make it harder for the Commission's ideas to be applied to the sale. The bank must now weigh up the competing pressures of achieving this time-scale versus getting the best price. To gain the best price they may need to set a new final cut-off date for indicative bids given late interest from a number of parties. However to do this would almost certainly miss the deadline for finalising a sale contract before the Commission publishes its report in mid-September.