A period of exclusivity between Lloyds and Co-op on the Verde sale ended two weeks ago as a result of questions from the FSA over the management capabilities and governance at the Co-op as well as questions about its systems expertise.
But under terms of the new proposal Verde’s interim management team would transfer with the business and run the Co-op’s enlarged banking business.
The Verde branches would not be removed from Lloyds’ technology platforms and would instead be reliant on the high street bank for its operational capabilities.
Lloyds’ has until November 2013 to offload the Verde branches as a result of a penalty imposed by the EU for accepting a taxpayer bailour.
The assets account for a 4.6% share of the UK current account market and up to 19% of Lloyds’ mortgage book with around five million customers.
The sale would mean the original terms of the EU’s ruling would be met given the brances would be under the control of a third party entity.
Banking venture NBNK made a rival offer two weeks ago when the exclusivity period between Co-op and Lloyds ended. The offer would give Lloyds’ investors cash or shares in NBNK were it to be successful.
