State-backed Lloyds sells 632 branches to Co-op at a knock-down price Lloyds shareholders said that the European competition authorities had been "too punitive" in their edict that forced the British bank to sell by a November 2013 deadline, after it received state aid. Under heads of terms revealed on Thursday, aside from the £350m to be paid up front for the branches, known as the Verde business, Lloyds may get £400m more if targets are met - but will have to wait until 2027 to receive the full amount. "This is a forced deal, which has meant Lloyds virtually had to pay to have it taken off its hands," said one top ten investor. "Lloyds should have had more time," said another, adding that funding for banking acquisitions is currently nearly impossible. David Buik, a veteran City commentator, called it "daylight robbery." "The government should have insisted on a 'full and fair" price for this transaction," he said. The full list of branches being sold Banking sources said the sale was settled despite a previous offer from rival NBNK Investments, a vehicle created to bid for the assets, of £800m up front, plus over £400m in performance-related payments. However, whereas NBNK would have required a full separation, the Co-op deals means Lloyds avoids the costs of hiving off the branches fully. Under the plans, Lloyds executive Paul Pester will remain at the helm of the Verde branches, which will use Lloyds" TSB branding before moving to the Co-op's. Sources expected Lloyds to make a loss on the sale of up to £700m, but the bank said this will be "broadly offset" by reductions to the capital it needs to hold as its network shrinks to 2,240 branches. Its shares lifted 0.46 or 1.54pc to 30.23½p, as investors and the bank's insiders conceded that most of the damage had already been priced in. One senior source said: "At least it's gone now and we can move forward with the integration and cost savings programme."