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(ANDREW WINNING/REUTERS)

BREAKINGVIEWS

Lloyds faces stretch to reach share price target

Reuters Breakingviews delivers agenda-setting financial insight. Its global correspondents react to stories as they develop, delivering sharp and provocative commentary on big financial news as it breaks.

Lloyds Banking Group needs to launch “Operation 61 pence.” The U.K. bank’s chief executive officer, Antonio Horta-Osorio, and its main shareholder, the British taxpayer, have a lot riding on the shares adding 10 pence to their current 51-pence price. That’s one of the key conditions for Horta-Osorio to receive a £1.5-million ($2.3-million) share-based bonus. And the government would no longer be sitting on a loss on its rescue. The snag is that Lloyds has few levers to pull to get there.