HBOS adviser Deutsche Bank is reportedly sounding out interested parties in Insight Investment, one of the businesses Lloyds acquired in the purchase of HBOS.
Lloyds was expected to, and may yet, combine the asset management group with its Scottish Widow investment division. The bank, however, wants to see if it can "realise goodwill" in a sale.
The move comes as part of Lloyds' effort to rid itself of the businesses inherited from the purchase of HBOS. Lloyds may also be under pressure from the European Commission to sell assets in exchange for the state funding it has already received.
Potential buyers for Insight are said to include F&C's asset management, Alchemy Partners and Resolution.
It is thought that Lloyds could accept a low price for Insight, which is proving to be a burden to the reluctant owner.
Insight's chief executive Abdullah Nauphal is interested in a buyout for the business.
