Bermuda-based asset management and buyout advisory firm Lazard Ltd. yesterday reported a nearly four-fold income jump to $73.4 million from $15.1 million in the same period last year largely thanks to strong revenues from advising companies on merger and acquisition activity.

This was the company?s first earnings announcement as a public company after listing on the New York Stock Exchange on May 5 ? a development that broke up what had been one of the most closely-held investment firms for nearly 160 years.

Although the company?s earnings in the period were solid its management in Europe appears heading for a possible shake-up.

In a press statement separate to its earnings announcement, the company yesterday said it was reorganising its European investment banking group into one business.

A tussle also appears in the making over who controls Lazard?s European segment. A powerful Italian banker, Gerardo Braggiotti, who international media reports say may have believed he was due a promotion, gave Lazard his notice effective from July 15 but it looks like the company could try to get him to serve out his contract.

The statement on the European reorganisation said: ?Lazard has reiterated to Mr. Braggiotti that it has complied with, and will continue to comply with the agreement that Lazard and Mr. Braggiotti had signed.? Lazard said the two parties were ?in discussions concerning their relationship?.

Chairman and CEO Bruce Wasserstein said the solid results in the first quarter demonstrated the strength of Lazard?s franchise.

?Our business model is simple. We generate revenues through our focus on M&A, financial restructuring and asset management.?

In total, Lazard said its M&A net revenues were up 66 percent to $122.3 million during the three-month period ended in March compared to $73.8 million in revenue from this same segment a year ago.

The company advised on 18 M&A transactions in the first quarter, eight of which were completed during the period.

Of those deals Lazard advised on, they included the $41 billion acquisition of UFJ Holdings by Mitsubishi Tokyo Financial and the $10.3 billion merger between MCI and Verizon Communications.

The company also gleaned $24.1 million in net revenues from its financial restructuring business, a 33 percent improvement on the $18.2 million taken in during the first quarter, 2004.

Lazard is helping with the restructuring of Trump Hotel and Casino Resorts, Parmalat, Eurotunnel and Olympic Airlines and Airway Services.

Asset management revenues increased ten percent to $106.9 million from $96.8 million a year ago.

Year on year assets under management expanded nine percent to $86.3 billion but were $178 million lower quarter on quarter after net asset inflows of $346 million were offset by decreases due to market depreciation and unfavourable foreign exchange movement tied to the strengthening US dollar, the company said.

Mr. Wasserstein said the company tried to keep its operating expenses constant ? no more than 57.5 percent of operating revenues as a cost for people and to keep facility and technology costs at a steady level.

Lazard also cut its headcount by five percent to 2,035 employees and managing directors which helped it lodge six percent lower compensation and benefit costs of $105.9 million in the quarter.

?The intended result is a company with a high degree of operating leverage. Unlike many of our competitors, Lazard does not use its own financial capital to take trading risks. We are a company that focuses on its intellectual capital.?