Paris Bank Partners Threaten to Quit

Bruce Wasserstein, the New York banker tapped to run Lazard, the largest privately held investment bank, is attempting to placate partners in Paris after some threatened to quit, company officials said.

Partners in Paris meet today to approve changes in the firm’s organization, a prelude to a full vote later this week to transfer control to Wasserstein from Michel David-Weill. Wasserstein may give French partners oversight of support staff, such as research analysts, rather than having them report to New York, to help win their support.

Wasserstein was recruited by David-Weill last month to stem Lazard’s decline in the U.S., where its share of mergers dropped to 3% this year from 13% in 1997. Wasserstein needs Paris bankers, including Georges Ralli and Gerardo Braggiotti, who help provide about a third of Lazard’s revenue. Both considered leaving, said people at the firm.

Bloomberg News