Five British banks would be looking to float their stocks in the market. This makes for a lucrative menu for investors seeking to find the best deals in the next couple of years.
Because of its inability to find buyers, state backed banks such as Lloyds and the Royal Bank of Scotland are preparing for initial public offerings of the hundreds of branches required to be sold off and divested under the European regulations called Basel III.
The plan by British bank IPOs would definitely conflict with the plans of Santander of Spain and Richard Branson's Virgin Money as well as the National Australia Bank's plan to divest its businesses in Britain.
Many buyers have been put off to purchase these British banks because of the slowdown in the British economy, the increased overheads of running a bank post 2008, complicated IT integration and high salaried staff that eat up into the bottom line. These though can help lower the IPO pricing range which would effectively entice many to invest instead rather than purchase.
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