Peter Marks, chief executive of the Co-operative, today insisted that it could still take over 632 Lloyds bank branches being sold as Project Verde.
But he admitted that there were still major concerns. He said: “There are significant economic and regulatory hurdles that we are talking to Lloyds and the Financial Services Authority about. Verde does not even have a profit and loss account. We are determined to do full due diligence.”
Marks said that a decision on Verde is now “ a matter of weeks not months away” but stressed that the Co-op’s bid is “non-binding” and would only proceed if the deal was “in the interests of “our members and other stakeholders.”
Lloyds shares fell 1% or 0.36p to 34.07p on continued fears the deal with the Co-op will not come off. A huge fall in supermarket profits left Co-op’s full-year profits 6% lower at £373 million on sales 1% higher at £13.3 billion. Food operating profits fell 20% to £309 million while bank profits were flat at £200 million before a £90 million charge for payment protection insurance.
Co-op sales of petrol from its 217 stations rose 50% last week on fears over the tanker-drivers’ strike. Marks said the food side of the business has built up “around two weeks” of fuel stocks to keep deliveries running.
He added: “We may not be in technical recession but the Governor of the Bank of England thinks we are and so does Mrs Bloggs.”
