NEW YORK (Bloomberg) ? Lazard Ltd., the investment bank run by Bruce Wasserstein, plans to sell 12 million shares ? half by the company and the rest by current and former managing directors ? to repay debt and make investments.

Total proceeds would be about $549 million at yesterday's closing share price of $45.79. Lazard estimated that the sale of the company's half will raise $262 million after deducting expenses and fees, according to a US Securities and Exchange Commission filing yesterday. Lazard said it may use the proceeds to reduce debt and finance purchases by its asset management and advisory units.

During Lazard's initial public offering in May, 2005, the firm's managing directors and former managing directors were given stakes in a holding company. They were restricted from converting their stakes into common stock until 2008. The restriction has been waived allowing the directors to convert and sell 6 million shares, or 9.7 percent of their total holdings.

Shares of Lazard fell $1.83, or four percent, to $43.96 in New York Stock Exchange composite trading. Lazard shares have risen 76 percent since they were first sold to the public at $25 apiece.

Wasserstein, 58, won't sell shares in the offering, according to the filing. The selling shareholders include five executive officers and more than 100 managing directors and former managing directors.

The individuals selling the most stock are Kenneth Jacobs, who runs Lazard's business in North American and plans to sell 286,331 shares, and vice chairman Steven Golub, who plans to sell 249,622 shares. Jacobs will own 1.69 million shares after the offering, while Golub will hold about 1.48 million.

Vernon Jordan, 71, is the only Lazard board member who filed to sell shares in the offering. Jordan, a former Clinton administration adviser who has been a senior managing director at Lazard since 2000, plans to sell 53,008 shares. He will own 313,423 shares after the sale.

The investment banks managing the offering, Goldman Sachs Group Inc. and Lazard Capital Markets, will have the option to sell an additional 1.8 million shares to meet demand.