Lloyds sees shares drop as government prepares to offload stake - UPDATE

Lloyds was one of the worst performing constituents on the FTSE 100 on Friday afternoon on speculation that the government is looking to sell its stake in the lender at a lower price than when it bailed out the bank five years ago.

Lloyds was one of the worst performing constituents on the FTSE 100 on Friday afternoon on speculation that the government is looking to sell its stake in the lender at a lower price than when it bailed out the bank five years ago.

The government took a 39% interest in Lloyds during the financial crisis and would consider offloading its stake once the share price hits 61p, around eight pence higher than Friday's price.

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