American financial service provider Ameriprise Financial is preparing a GBP800 million or US$1.22 billion bid for Scottish Widows, the asset management arm of Lloyd's Banking Group. This was confirmed by the weekly newspaper the Sunday Times.

Just last week, Reuters reported the engagement of advidors for the possible sale of the asset management firm. The sale of Scottish Windows Investment Partnership was in preparation for an increase in capitalization as required by Basel III regulations.

Many analysts see, according to the Sunday Times, that Ameriprise would undertake structural reforms if and when it wins the auction. The Minneapolis, MN based company would start by laying off workers as it already owns another British fund firm, Threadneedle Investments.

When sought for comments, Ameriprise and Lloyds declined to provide any.

The Bank of England recently issued an order to UK banks to increase total capitalization by GBP25 billion through disposal of assets in order to be properly prepared for any future losses on loans and investments.