UK to rebuff private equity, overseas funds in Lloyds sale-sources
* Sale to institutions expected as early as September
* Govt cool on private equity/sovereign wealth interest
* Up to a quarter of govt stake could be sold in 1st round
* Sovereign wealth would need to offer premium - source
* "Accelerated bookbuild" could allow overnight sale
By Matt Scuffham
LONDON, July 12 (Reuters) - Britain will start selling its shares in Lloyds Banking Group to pension funds and insurers later this year, rejecting interest from private equity and sovereign wealth funds, industry and political sources said.
The government could sell up to a quarter of its 39 percent stake as early as September, the sources said, especially if the bank's first-half results, due in August, are well received.
Lloyds is expected to report a sharp rise in profit, which would raise hopes it can start paying dividends again in 2014 and increase its attractiveness to investors. Continued...