Lloyds TSB Downplays Rumours That A Sale Of Scottish Widows Is Imminent

Rumours that Lloyds TSB wants to sell Scottish Widows, the Edinburgh-based former mutual life assurance and pensions provider the bank bought for 7 billion in 2000, washed through the London markets yesterday. The Widows has outsourced its investment administration needs to State Street. The rumours, sparked by a review of the bank’s businesses by a new CEO, the ex-Citibanker Eric Daniels, were discounted by bank spokesmen. However, although Scottish Widows is a strong brand in the UK market, it has suffered from the bear market, and looks like an increasingly expensive acquisition. “Scottish Widows is a business where we believe we can meet hurdles and if you can make a good return on capital then it’s a good business,” Daniels told the Wall Street Journal Europe on Friday. “(But) if we can’t build competitive advantage, we need to scratch our heads and have a rethink.”