Bank sale inches forward

Lloyds TSB Group - the owner of the National Bank - yesterday issued another official update on a sales process that investment bankers expect to take months.

Bankers say indicative bids for the asset - estimated to be worth $5.5 billion or more - were in 15 days ago.

Lloyds has not confirmed that, but yesterday flagged another stage in the process.

"Several parties are expected to be making contact with the New Zealand Commerce Commission, in due course, to discuss their ownership options with respect to the National Bank," the bank said.

Commerce Commission spokeswoman Jackie Maitland said: "We haven't received any applications yet. "All the parties likely to be involved are aware of the Commerce Act and the clearance procedure" and were expected to be in touch.

Lloyds TSB is the fifth-largest British bank. It is being advised in the sale process by Deutsche Bank.

Commonwealth Bank of Australia, ANZ and Westpac are seen by some market participants as the most likely buyers.

Bankers expect that the strip-tease - where the bank opens up its secrets to serious bidders - and then the final due diligence by a prospective buyer will together take months, not weeks.