Lloyds values TSB unit at up to $2.4 billion

LONDON (AP) -- State-backed Lloyds Banking Group PLC is valuing its TSB unit at up to 1.45 billion pounds ($2.4 billion) as it prepares to sell a 25 percent stake in the entity later this month.

Lloyds, which was bailed out during the financial crisis in 2008, has set a flotation price of between 220 pence to 290 pence. At the midpoint of that range, the TSB's value would be about 1.2 billion pounds and Lloyds would raise around 300 million pounds.

The final price will be announced on June 20.

Lloyds is floating off TSB to meet European Union rules on state assistance. It had originally intended to sell 631 branches to the Co-operative Group but that deal collapsed last year when Co-op discovered a black hole in its balance sheet.