LONDON (Reuters) – Lloyds Banking Group (LLOY.L) is in talks to sell part of Insight, the investment management operation it inherited when it took over struggling rival HBOS last year, the Financial Times reported.
Lloyds declined to comment.
Lloyds’ asset management managing director and Insight head Abdallah Nauphal is leading a team to buy Insight’s third-party business, which manages about 74 billion pounds ($119.1 billion) of funds, the paper said.
It added that Nauphal is seeking to buy out the funds with the backing of one of several interested private equity firms and trade buyers.
The bank, 43 percent owned by the British government, has warned that European competition regulators may require it to make disposals to win approval for the state aid it is getting.
Analysts are also expecting it to bolster its capital with the sale of unwanted businesses.
(Reporting by Rosalba O’Brien; Editing by Kim Coghill)