Battling wonderwomen call a truce

TALKS on a peace deal were going on late on Wednesday in the mammoth High Court battle between 'Ice Maiden' Carol Galley of Merrill Lynch Investment Management and rival superwoman Wendy Mayall of the Unilever pension fund. The hearing was suspended as legal teams from the two sides sought to thrash out an out-of-court resolution.

A settlement would be a disappointing swansong to the career of top Merrill fund manager Galley, 53, who is on the brink of retirement. The 'Ice Maiden' has fought to defend her reputation. A climbdown by Merrill could encourage other clients, including J Sainsbury and Surrey County Council, to demand compensation. It could also sound alarm bells for underperforming fund managers across the City.

Unilever sought £130m damages from Merrill, which managed a chunk of its £4bn pension fund. The consumer brands giant alleges that Merrill followed a high-risk investment strategy.

The two sides made several earlier attempts to settle at £25m-£75m. Sources said that any settlement is likely to be 'more than £60m'. Merrill and Unilever refused to comment.

The judge, Mr Justice Colman, said the adjournment was granted 'for the convenience of both parties'. Sources said both sides are baulking at the astronomic costs of the case, which has become bogged down in arcane disputes about risk management. 'The case has disappeared up its own backside. The costs are becoming absurd,' said one. Merrill is keen to avoid incurring a judgment against it that would set a precedent for other disgruntled clients.

Galley's immaculate power-dressed appearances in court contrasted with the mumsy style of Mayall, a 43-year-old mother of two. Galley admitted that Merrill's performance was 'much worse than expected', but blamed unusual markets.