New British banking venture NBNK has made a fresh bid for 632 Lloyds retail bank branches, putting it back in competition for the assets with shops to banking group The Co-Op, which has faced problems convincing regulators on its offer.
NBNK said it was offering an "alternative demerger structure" for the Lloyds branches, which are estimated to be worth about £1 billion ($1.6 billion).
It wants to underwrite 100% of the asset package demerger, offering Lloyds shareholders - including the UK taxpayer - the option of receiving cash directly and/or receiving shares in a new, listed banking group.
Lloyds shares were up 2% by 1025 GMT, outperforming a weak European banking sector.
Lloyds, 40% owned by the taxpayer, has to sell the 632 branches as a condition for the billions of pounds of British state aid it received during a bail-out following the 2008 financial crisis.
NBNK lost out to Co-Op last year in its bid to become Lloyds' preferred bidder in the branch sale, which has been codenamed "Project Verde", but both Lloyds and Co-Op said last month the sale was proving to be complicated.
Co-Op Chief Executive Peter Marks told reporters he could not guarantee he would pull off the deal, and NBNK has always been hovering in the wings.
NBNK pledged that its takeover of the Lloyds branches would not result in any redundancies or branch closures.
But a spokeswoman for Lloyds said the bank was continuing exclusive negotiations with its preferred bidder The Co-operative Group.
"The group acknowledges receipt of a letter outlining an indicative revised proposal from NBNK. However, we continue to negotiate solely with the Co-Operative Group."
Lloyds, 40% owned by the taxpayer, has to sell the 632 branches as a condition for the billions of pounds of British state aid it received during a bail-out following the 2008 financial crisis.
NBNK said in a separate statement that it wanted to boost competition in the British banking sector.
"Our objective is to create a new, large challenger bank and brand that will shake-up UK high street banking, operating in the interests of customers," said Hoffman.
"I believe we have tabled a compelling proposition that will invigorate competition, provide jobs and is the right solution for taxpayers."
