STOCKS NEWS EUROPE-Lloyds shares up as Blackwell seen as new chairman

Shares in Lloyds nudge higher as the bank nears the appointment of Norman Blackwell as its new chairman, according to the Financial Times.

Lloyds declined to comment.

Blackwell is currently chairman of Lloyds' Scottish Widows subsidiary and has been seen as one of the favourites to succeed Win Bischoff, who has said he plans to step down early next year. Blackwell has been on the board since June 2012. He is currently chairman of Interserve (LSE: IRV.L - news) and has previously worked at NatWest and McKinsey.

Lloyds has turned around its fortunes and its shares are up 67 percent this year, allowing the government to start selling its stake. But Britain still owns 33 percent of the bank and would like to sell all its stake by the time of the 2015 election - possibly including a sale to retail investors - and the new chairman will play a key role in that process.

Lloyds shares were up 0.3 percent at 77.1 pence by 0805 GMT, in line with a slightly firmer DJ STOXX Europeans bank sector. Interserve shares were down 0.2 percent.

Reuters messaging rm://steve.slater.thomsonreuters.com@reuters.net (Reporting by Steve Slater)