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Lloyds TSB set to reward shareholders

Date: Mon, 15 Dec 03 Analysis

UK banking and life insurance giant Lloyds TSB is set to announce how much shareholders will see of the proceeds from the £2.25 billion sale of its New Zealand arm and the £491 million sale of its Brazilian operations.

Analysts have predicted the cash could be returned through a share buyback of up to £1 billion, which is deemed more tax efficient than a special dividend, although a significant amount of the proceeds are expected to be retained within the business.

The sales of the two operations come as part of a new drive under chief executive Eric Daniels, who replaced Peter Ellwood in the role this year, to focus Lloyds on its core UK market.

In October, Mr Daniels criticised the group's recent performance saying it would not improve until the second half of next year.

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