UKFI not asked anyone to chair Lloyds

By Steve Slater

LONDON (Reuters) - The body in charge of Britain's bank stakes said it has not asked former Citigroup (C.N) chairman Win Bischoff to chair Lloyds Banking Group (LLOY.L) and the search was still ongoing.

UK Financial Investments (UKFI) said a report it had asked Bischoff to head Lloyds was "pure speculation," and no-one else had been asked either.

"The process to select a new chairman is being run by Lloyds and is still ongoing," UKFI said in a statement.

Veteran banker Bischoff has been asked to take the job by UKFI, which has a 43 percent stake in Lloyds, Wednesday's Financial Times reported.

Lloyds declined to comment.

Its current chairman Victor Blank plans to step down in the next year, following intense criticism of his role in the purchase of troubled rival HBOS.

That deal has saddled Lloyds with billions of pounds of losses from HBOS's more risky loan book, forcing the government to provide rescue funds.

The bank may have to sell a big chunk of its assets to comply with European antitrust rules, the EU's competition chief said on Tuesday, citing "problems" with Lloyds' share of the UK retail banking market.