ECONOMY

ECONOMY’S SERVICE SECTOR EXPANDS IN APRIL, BUT AT A SLOWER RATE

The service portion of the American economy expanded for the 25th straight month in April, but at a slower pace than in March, a private research organization said Wednesday, signaling higher energy prices and inflation concerns are pressuring economic growth.

The Institute for Supply Management said its index of activity among service companies for April fell to 61.7 from 63.1 a month earlier. Analysts had estimated the index would ease to 61 in April.

Although the index was down, it remained above 50, indicating the economy’s crucial service sector continued to growth last month.

– Associated Press

WALL STREET

LAZARD RAISES $855 MILLION IN INITIAL STOCK SALE Lazard, the investment bank led by Bruce Wasserstein, raised $854.6 million in an initial public offering yesterday, ending 157 years of family control of the largest closely held securities firm.

New York-based Lazard, founded by Chairman Michel David-Weill’s ancestors as a dry goods business in New Orleans in 1848, sold 34.2 million Class A shares at $25 each, a person familiar with the matter said. Goldman Sachs Group managed the sale of a third of the company, which will leave Lazard’s 164 managing directors with 66.3% of the voting power.

Mr. Wasserstein, 57, is selling Lazard as fees from advising on mergers and acquisitions are the highest since 2000.About $785 billion of transactions have been announced worldwide during 2005, up 20% from a year earlier, data compiled by Bloomberg show. The IPO of Lazard, which ranks 10th this year among M &A advisers, is the largest by a securities firm since Goldman went public six years ago.

– Bloomberg News