Braggiotti's Cuccia coup

In business, doing well is the best revenge. Ever since he lost a bitter 1997 power struggle to succeed the legendary Enrico Cuccia at Mediobanca,Gerardo Braggiottihas put his connections to good use for Mediobanca's rising rival in Italy, Lazard. By winning advisory assignments on major deals like Pirelli's 2001 purchase of a controlling stake in Olivetti, Braggiotti, Lazard's Italy chief, has helped the firm cut in on his former employer's turf.

Now Braggiotti, 50, has a powerful new ally that should give him an even greater edge in Italian investment banking. IntesaBci -- Italy's biggest bank by assets -- is paying $150 million for a 40 percent stake in Lazard's Italian business, and an additional $150 million for a 3 percent stake in Lazard LLC, the holding company of the investment bank.

Braggiotti, who is also deputy chairman of Lazard LLC, insists that the deal wasn't motivated by his desire to exact revenge on Mediobanca; he simply wants to expand his firm's presence in the market for midsize Italian companies. "We need to broaden our client base," he says, predicting that Intesa's contacts will "increase our revenues significantly."

But did Intesa overpay? The bank is shelling out cash for a minority stake with little influence over Lazard's 65 Italian bankers. Skeptics note that in July Capitalia had raised E228 million ($226 million) by selling a 19 percent stake in its investment bank, Mediocredito Centrale. Mediocredito's boss, not coincidentally, is Matteo Arpe, who worked with Braggiotti at Mediobanca. Retaining control while tapping other people's pockets -- both men would have made their old boss Cuccia proud.