By Steve SlaterLONDON (Reuters) - Britain will get a stake of up to 77 percent in Lloyds Banking Group (LSE:LLOY.L - News) after agreeing a deal to cap its losses at 260 billion pounds ($370 billion) of risky assets, the struggling bank said on Saturday.
Lloyds will pay a 15.6 billion pound fee to participate in the deal, and will take the "first loss" of up to 25 billion pounds on the assets. Thereafter, the government will assume 90 percent of any losses on the value of the assets.
The deal will see the government's stake in Lloyds rise to 65 percent from 43 percent if shareholders do not take up an offer to buy 4 billion pounds of shares. The government's stake could rise to 77 percent if 'B' shares are converted, but its voting stake will be capped at 75 percent.
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