Brokers at war over poaching staff

ICAP, the money broking firm run by swashbuckling chief executive Michael Spencer, faces a second claim that it poached staff from a rival in breach of an employment contract.

Blackbird, a smaller US competitor, claims that ICAP hired its founder and former chief executive Ray May as a consultant, breaking an employment deal it had struck with him.

Blackbird, run by former JP Morgan trader Shawn Dorsch, agreed a £500,000 payoff with May in September 2000 on condition that he did not work for a rival for a year. But May began working for ICAP as a consultant nine months later, Blackbird claims in a legal complaint filed in the US. It is not known how much ICAP paid May to join, or the size of the damages Blackbird is seeking. But the fresh allegation comes as ICAP hopes to resolve a bitter breach-ofcontract dispute with Cantor Fitzgerald this week over three brokers that ICAP is said to have poached.

The acrimonious court battle with Cantor has been highly embarrassing for Spencer, who was accused of trying to exploit his rival's weakness after the terrorist attack on the World Trade Centre killed 658 Cantor staff.

Cantor produced internal e-mails from Spencer in which the ICAP boss allegedly said he would 'love to plan a heist' and, 'Oh, I would love to put one up their bottom... and this is the time I have been waiting for for just a few years!' Spencer and ICAP have vigorously denied the claims.

ICAP also strongly denies the allegation about May and contests Blackbird's version of events. An ICAP spokesman insisted that Blackbird's claims were a 'side issue' to a wider dispute between the two firms.

ICAP has a 19% stake in Blackbird but believes it has an overall voting majority and should have control of the board. It argues that its 19% comes in the form of preference shares, which give it 31% voting rights in Blackbird. May also has a 20% Blackbird stake, which ICAP claims bumps up its voting rights to a controlling majority of 51%.

Blackbird disputes ICAP's figures and claims the big broker wants to have it shut down, a charge that ICAP also hotly disputes.

The two firms have now agreed to thrash the matter out at an emergency general meeting on September 10 at which the shareholders will propose board members. News group Reuters also has a 10% stake in Blackbird. ICAP suggests Blackbird is trying to capitalise on publicity surrounding the Cantor case.