Bankers have approached Lazard about a possible flotation which could value the world's largest independent investment bank at about $3 billion, sources familiar with the situation said on Thursday.
The investment bank, run by deal-making veteran Bruce Wasserstein, has met with Goldman Sachs, Morgan Stanley, Citigroup, UBS and Lehman Brothers, which have each given views on an possible initial public offering, the sources said.
Lazard had listened what the bankers had to say, they added, but no decision had been taken on a float.
Lazard declined to comment.
The bankers homed in on Lazard as a likely IPO candidate after rival corporate finance group Greenhill made a successful market debut in May this year via an $87.5 million IPO.
Flotation has always been touted as a possible route for Lazard after Wasserstein was brought in 2001 to revitalise the investment banking group.
He has made a string of high profile hires to bolster Lazard's dealmaking fire-power and this has helped the bank win some lucrative mandates, including an advisory role with Bank One on its $57 billion takeover by J.P. Morgan early this year.
But the bank has yet to see the full benefits of Wasserstein's revamp, which could mean Lazard is in no hurry to consider an IPO or other options such as a sale, banking sources said. Wasserstein's contract runs until 2006.
The Financial Times reported that on the basis of Greenhill's market value, Lazard's advisory business, excluding fund management, would be worth 4.9 times last year's revenues, or $3.4 billion.
