Lazard CEO's illness raises concerns on succession

* Lazard succession plans have not been announced

* Lazard not giving updates on CEO's condition

* Lazard shares down 2 percent

NEW YORK, Oct 12 - Lazard Ltd Chief Executive Bruce Wasserstein's illness has raised questions about the the M&A advisory firm's leadership and succession plan, sending its shares lower.

Lazard late Sunday said Wasserstein had been hospitalized for an irregular heartbeat. It called his condition "serious" but adding that he was "stable and recovering."

The company, which did not return calls seeking comment on Monday, said it would not provide updates and has not said who will lead the firm in Wasserstein's absence. Lazard did not say when Wasserstein had been hospitalized.

Wasserstein, 61, a star investment banker since the 1970s, has most recently been involved in the battle between Kraft Foods Inc and Cadbury Plc, representing the U.S. food group in its bid for the British chocolate maker.

Lazard shares were down 2 percent in afternoon trading. The stock has gained 38 percent this year.

Wasserstein's illness has left questions not only about who will handle his deals, but about who will fill the void at the helm of the firm he has helped build up since joining in 2002. ID:nL8305075

"Mr. Wasserstein has been the driving force behind this company in recent years," veteran analyst Richard Bove of Rochdale Securities said in a research report. "Should he be lost to illness, the company is expected to suffer. Its revenues will be impacted."

POTENTIAL SUCCESSORS

Michael Hecht, an analyst with JMP Securities, said the most obvious successor to Wasserstein is Steven Golub, Lazard vice chairman and chairman of the firm's financial advisory group.

Hecht also mentioned Charles Ward, Lazard president and chairman of its asset management group, and Gary Parr, a deputy chairman, who leads Lazard's financial institutions group, as potential successors.

Golub, 63, has spent more than 25 years with Lazard.

Ward, 57, led global investment banking and private equity at Credit Suisse First Boston before joining Lazard in 2002.

Parr has been involved in some of the biggest deals since the financial crisis erupted last year, such as the U.S. restructuring of Fannie Mae, Mitsubishi UFJ Financial Group's investment in Morgan Stanley, and the fire sale of Bear Stearns Cos to JPMorgan Chase & Co.

"There's a deep bench for potential people that could step up and fill that spot," said Hecht.

Wasserstein's successor will have big shoes to fill. The Lazard CEO has spent decades building relationships and brokering more than 1,000 transactions worth more than $250 billion, including Time's merger with Warner Brothers and the Dean Witter, Discover & Co combination with Morgan Stanley.

Concerns about Wasserstein's health could extend to Lazard's status as lead financial adviser to Kraft on its $16.7 billion offer to acquire Cadbury, although at least two other senior Lazard bankers were named on the initial deal announcement.

"Lazard remains our lead financial adviser, and this will not impact its role in our proposed offer for Cadbury," Kraft spokesman James Olley said in a statement.