Warring Lazard bosses 'close to deal'

LAZARD executives are nearing a compromise on the planned float of the investment bank.

Day-to-day boss Bruce Wasserstein is set to make major concessions to chairman Michel David-Weill to facilitate the float, according to the Wall Street Journal.

In return, David-Weill has dropped his ultimatum to Wasserstein that he must bring the bank to market by June or quit.

If agreement is reached between the two, Lazard would then file registration papers for an initial public offering (IPO) with the US Securities and Exchange Commission before the end of next year, with the firm making its market debut in March 2006.

An IPO would end David-Weill's control of Lazard, founded by his family in 1848, and give legendary Wall Street dealmaker Wasserstein, 56, capital to expand the firm.

Lazard is expected to be valued at about $3bn (£1.6bn) in any market listing.

Wasserstein's recruitment of high-flying bankers to revive Lazard's flagging performance has led to friction with David-Weill, and profit fell some $39m to $249m last year.

David-Weill has long resisted an IPO and said in October that he had a 'strong belief in the future of Lazard as a private firm'.

He and French investment company Eurazeo are demanding $1.62bn in cash for their 36% controlling stake.