The fight to float Lazards

BRUCE Wasserstein's ambition to float investment bank Lazard on Wall Street will test even his legendary dealmaking skills.

'Bid 'em up' Bruce, who became chief executive of the 150-year-old institution in 2002, has had his eye on a float pretty much since the moment he arrived.

Sources suggest the Lazard board remains undecided after a meeting in Paris yesterday. Assuming Wasserstein prevails, however, the next step is filing documents outlining an intention to float with US regulator, the Securities and Exchange Commission.

An actual share listing - which could value the firm at £1.7bn - is not expected until next year at the earliest.

A float by Lazard would be the biggest in the sector since Goldman Sachs - hired by Wasserstein as an adviser - went public on Wall Street five years ago.

Earlier plans by the Queen's broker Cazenove for a listing were shelved in the bear market and it now looks likely to do a deal with US giant JP Morgan Chase.

For all his acumen, Wasserstein is likely to find that getting to market is no simple task.

He appears to have won agreement in principle for a float from his chairman, the septuagenarian Frenchman Michel David-Weill, whose great-grandfather Alexander co-founded the Lazard empire in 1848.

David-Weill has been under pressure for a number of years to reform Lazard's labyrinthine corporate structure.

With no male heir, he has also lacked an obvious successor - though feminists might point out that he could have groomed one of his four daughters.

A float would resolve the conflicts between David-Weill and Wasserstein, who have apparently scrapped over the latter's penchant for hiring high-priced bankers.

It would help to bring together the group's US, Paris and London arms, with the centre of power shifting towards New York. That would make the business more attractive to potential purchasers.

There are some big issues for Wasserstein, however. The first is people - there will be no business to float if too many dealmakers walk out.

Partners will all be jealously eyeing the proposed division of the spoils. Already, there are suggestions that some of the biggest hitters are opposed to the plans and are ready to defect, taking valuable business with them.

The second possible stumbling block is Wasserstein himself. His high personal profile has led to disquiet over the power that would accrue to him after a float.

There are also questions over the valuation investors would put on the business in current conditions. With markets overshadowed by worries about terrorism and the high oil price, Wassersteinhas not picked the easiest time to whip up enthusiasm.

Sainsbury exit

THE official story on the departure of Roger Matthews, the outgoing finance director of troubled supermarket chain J Sainsbury, is that he is quitting for a 'portfolio' career and to play more sport.

The fact that he is staying until March, while a search for a successor is undertaken, suggests he has not been mercilessly scalped.

Whether Matthews was nudged towards the exit or steered himself towards it, the hand of new chairman Philip Hampton seems clearly visible in his move.

Hampton was a formidable top numbers man at BT and Lloyds TSB - at least until he fell out with chief executive Eric Daniels - and is not known for having an emollient personality. It cannot have been particularly comfortable for Matthews having Hampton looking over his shoulder.

Whatever the reasons, Matthews' departure will do little to reassure Sainsbury investors, who fear it will be forced to issue a profit warning later this month. They must be pining for the longrumoured bid, which is proving slow to materialise.

Gas works

ENERGY watchdog Ofgem's report into last year's spike in gas prices may have disappointed the consumer lobby which hoped for firm action on market abuse.

Even its sensible suggestions for a more efficient market were in danger of being swept aside as gas and oil, which tend to move in tandem, hit new highs yesterday, threatening new pressure on bills.

Ofgem wants reforms of the gas market in Europe to encourage Continental suppliers to sell into the UK.

It is also looking at peculiar 'knot' contracts - a legacy from the pre-privatisation days of the mid-1980s - that exacerbate rising costs.

The intricacies of gas trading are not everyone's idea of a riveting subject, but as higher fuel bills bite, it is increasingly urgent to have an open, efficient market.