Lloyds Banking Group PLC (LSE:LLOY) has been thrown a potential legal curveball by an investor in Curve, the digital wallet developer it has agreed to acquire.
Following the announcement on Wednesday morning by the FTSE 100 lender, which is buying Curve for an undisclosed fee, the largest external investor in the London startup said it will not support the sale, which it said could lead to the deal being blocked.
IDC Ventures, which owns a 12% stake, says it is "deeply concerned about the conduct of Curve’s management and board during the current sale process".
The venture capital firm, headquartered in Copenhagen, Denmark and with offices in Madrid and Miami, said it is reserving all legal rights pending further developments, but will "take all necessary steps to protect shareholder interests if those obligations are ignored".
IDC claims that a group of directors and investors, including Curve’s CEO Shachar Bialick and several board members, "facilitated corporate decision-making to entrench control and override shareholder rights".
In a statement, the firm said: "It is a matter of real surprise to shareholders that Lloyds Banking Group, a leading UK institution, would contemplate proceeding with a transaction that IDC believes is not in the best interests of the company or its shareholders.
"As such, IDC does not intend to support the proposed sale and does not believe that it is capable of being implemented without its support."
Lloyds did not comment on the matter, having earlier said it expects the acquisition to be completed in the first half of 2026, subject to regulatory approval.
From a financial perspective, it does not expect the transaction to have an impact on guidance for 2025 or 2026.