Lloyds Banking Group is understood to be planning to auction off large chunks of HBOS assets, which includes some of the UK�s best-known corporations.

Lloyds Banking Group is understood to be planning to auction off large chunks of HBOS assets, which includes some of the UK's best-known corporations.

The struggling banking giant, which was formed by Lloyds TSB's government-driven rescue takeover of HBOS in January, has stakes in more than 60 companies, including cinema chain Vue Entertainment and D&D Restaurants, the business was founded by Sir Terence Conran.

Lloyds' total stakeholding in these 60-plus corporations is believed to have been accumulated by executives at HBOS at a cost of about £1.3bn - although the value now has more than halved to £600m.

Lloyds, which is 43%-owned by the taxpayer, has reportedly appointed City banker UBS to assess a sale of many of these former HBOS assets, which also includes Polypipe, a manufacturer of piping systems, Sunseeker, the yacht-builder, and Premex, a medical outsourcing specialist.

It is understood that many of HBOS's larger investments, including McCarthy & Stone, the retirement home builder, and Crest Nicholson, are not under review.

HBOS's massive exposure to the beleaguered UK property market is considered by many to be the chief reason for its near-collapse.

Lloyds last week unveiled its biggest jobs cull in Scotland yet, announcing around 300 layoffs in its commercial banking and specialist finance operations north of the border. The cuts arose largely from the winding-down of former Bank of Scotland operations, which took heavy losses from acquiring Crest Nicholson and McCarthy & Stone.

Eric Daniels, Lloyds' chief executive, has already signalled that he is open to disposals if the price is right.

lHoare Govett, the City stockbroker owned by Royal Bank of Scotland, is expected to face more trouble this week when one of its key analysts quits.

It is believed Richard Rae, the head of its crucial smaller companies research unit, is leaving the brokerage house and could take his 20-strong team with him.

Reports have suggested that Rae is quitting over concerns about the direction of Hoare Govett under the largely state-owned Royal Bank.

Royal Bank acquired Hoare Govett as part of its £49bn purchase of ABN Amro.