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Monday, June 18, 2012

Nelson Peltz takes an activist stake in Lazard

Nelson Peltz‘s Trian Fund Management said on Monday that it now owns a 5.1% stake in Lazard, stressing that it believes the investment bank is undervalued but on the right track with its strategic plan. They give a 38-page presentation that focuses on the relative strengths of the firm, including a strong asset-management arm, a blue-chip franchise and a relative freedom from the regulatory requirements that weigh down on universal banks.

They conclude that Lazard is worth $42 in their base case, $51 midpoint, and $61 in their high case. Lazard closed today at $24.25 and are down after hours to $23.81. So if he/they are right there is some decent upside.

Enjoy.
Trian-Lazard-Presentation-6-18-2012

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