Lazard go-ahead has sting in tail

MICHEL David-Weill, the septuagenarian chairman of investment bank Lazard, has finally given his consent to a £1.7bn Wall Street float that would end more than 150 years of private ownership for the venerable City firm.

But his agreement to the float plans, spearheaded by the bank's belligerent American boss Bruce Wasserstein, comes with strings attached.

The French billionaire has demanded Wasserstein's resignation if the float has not happened by the end of next June. Wasserstein, who has been embroiled in a long-running feud with David-Weill, has refused to give any such pledge.

All but a handful of diehard partners are understood to have agreed to the float.

David-Weill's move is likely to be interpreted as a final piece of brinkmanship in his war with Wasserstein, whom he is said to regret ever having hired as his heir apparent.

In a glacial exchange of letters, David-Weill spelled out his belief that if a float has not taken place by mid-2005, the bank would be perfectly able to continue as a private firm - without Wasserstein.

In his reply, Wasserstein said he intends to continue in his job until at least the end of 2006, as previously agreed. He called on the David-Weill camp to 'join me in acting with grace, humour and tolerance on these matters'.

Under Wasserstein's plan, Lazard would buy out David-Weill and other shareholders at a cost of around £695m.