Lloyds Bank announces TSB flotation

Lloyds has announced plans to float a 25% stake in its TSB business on the stock market, with small investors being offered free shares in the bank.

Investors will get one free share for every 20 shares they buy (up to the value of £2,000) and hold for a period of one year after the flotation.

The share sale is set to take place next month.

TSB is being floated to meet EU rules regarding state aid. Lloyds was bailed out by the UK taxpayer in 2008.

Simon Jack reports.