LONDON: The body that oversees Britain's stakes in Royal Bank of Scotland and Lloyds Banking Group has picked U.S. investment bank JP Morgan to advise it on the possible sale of shares, a prestigious and hotly contested role.
UK Financial Investments (UKFI) said on Friday JP Morgan Cazenove would initially help devise strategies "for realising value for the government's shareholdings in the banks."
It will not be paid for the initial period of work, a person familiar with the matter said.
UKFI said it will review the appointment on a periodic basis.
It also listed more than a dozen banks shortlisted to work on any share sale, which included all of the big names from Wall Street and the City of London.
The government is expected to kick-off the sale of shares in Lloyds, in which it owns a 39 percent stake, before the end of September if the bank's shares remain strong. It is likely to start with a straightforward placing of 3-5 billion pounds of shares, bankers have said.
Shortlists were named for four roles: a bookrunner to the sale and distribution of shares; co-lead managers to assist in a sale; capital markets adviser, to assist in a share sale process; and strategic/privatisation adviser, to help UKFI set its strategy or execute transaction.
Eighteen banks were on the shortlist to advise on strategy.
Joining JPMorgan were U.S. rivals Goldman Sachs, Bank of America Merrill Lynch, Citi and Morgan Stanley.
Also on the list from Europe were Barclays, HSBC, Rothschild, Credit Suisse, UBS and Deutsche Bank.
Six firms were names as potential capital markets advisors, who could help on a retail offer, including Lazard, Portman Capital and Solid Solutions. (Reuters)
