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NBNK to bid £1.5 billion for Lloyds bank branches

According to the BBC, the relatively new investment company will bid for 632 Lloyds branches.

The financial investment company, which was formed last year by Lord Levene and a consortium of City executives, says that a formal bid for the Lloyds outlets will be made later today, according to Robert Peston, business editor for the BBC.

NBNK has received billions in backing from institutional investors and is understood to be in significantly advanced talks to raise enough finance to ensure a successful takeover despite the presence of two other potential bidders.

A joint venture between Co-operative Financial Services and Britannia Building Society and the US investment firm, Sun Capital are the two rival companies also hoping to secure the 632 bank branches.

The European Commission competition authorities are forcing Lloyds to sell the branches and the bank has been given until 2013 to complete the deals.