Saatchi agrees peace terms Peace comes to house of Saatchi

The two warring sides in the bitter Saatchi battle have called an armistice, announcing a global settlement of all outstanding issues yesterday.

The move marks the end of one of the most acrimonious fights ever in London's advertising market, characterised by the poaching of clients, suits and counter-suits and a campaign of jibes and accusations .

Under the deal negotiated over recent weeks and finalised at the weekend, Charles and Maurice Saatchi will be free to operate a rival agency, to be called M&C Saatchi Agency, and have promised not to solicit business from their former firm, now named Cordiant, nor to approach Cordiant staff with offers of employment, until the end of the year.

For its part, Cordiant, the holding company that operates Saatchi & Saatchi, Bates and Zenith Media, has agreed to pay some of the Saatchi camp's legal costs, and to relinquish all claims to $40m (pounds 25m) earned by the Saatchi brothers through an investment in the footwear company, Adidas.

Cordiant had argued that the money had been paid in part for campaign work done by the brothers while they were employed by their former firm.

It is expected that bonuses owed to Jeremy Sinclair and Maurice Saatchi, both of whom left the agency after Mr Saatchiwas ousted as chairman, will remain unpaid. Mr Saatchi's bonus may have been as high as pounds 100,000, based on Cordiant's profit performance last year.

Cordiant and US executive Bill Muirhead have dropped their suits, stemming from Mr Muirhead's hasty departure from Cordiant's New York offices earlier this year and subsequent press speculation over what he may or may not have taken with him.

The legal wrangling began early this year, following Maurice Saatchi's decision to set up a new agency and bid for business from his old firm. Three senior Saatchi executives, David Kershaw, and Messrs Muirhead and Sinclair all signalled their intention to join him.

Cordiant successfully sought a court order limiting the three executives to taking only "preparatory steps" toward joining Mr Saatchi, in advance of a court hearing, scheduled for next month. Under the global settlement, the three will be free to take up their positions at M&C Saatchi from the end of this month. Another former Cordiant executive, Simon Dicketts, will also be allowed to join M&C Saatchi on 31 May.

Cordiant had lost four major accounts to the fledgling firm since January, most recently British Airways, worth pounds 80m in billings a year, according to the trade publication Campaign. Another pounds 40m in billings was lost when Dixons, the high street electronics retailer, moved most of its business to the new agency.

Insiders at Cordiant said the loss of the BA account meant that the damage was done, and the company was keen to settle outstanding issues. Cordiant stressed it wanted to continue to service its existing clients and was optimistic about the future.

Comment, page 25

Arts and Entertainment
Gregg Wallace in Summer's Supermarket Secrets
tv All of this year's 15 contestants have now been named
Sport
The giant banner displayed by Legia Warsaw supporters last night
football Polish side was ejected from Champions League
Arts and Entertainment
Could we see Iain back in the Bake Off tent next week?
tv Contestant teased Newsnight viewers on potential reappearance
News
i100(and it's got nothing to do with the Great British Bake Off)
PROMOTED VIDEO
News
news It's not just the world that's a mess at the moment...
News
Angelina Jolie with her father Jon Voight
peopleAsked whether he was upset not to be invited, he responded by saying he was busy with the Emmy Awards
News
Bill Kerr has died aged 92
peopleBill Kerr appeared in Hancock’s Half Hour and later worked alongside Spike Milligan and Peter Sellers
Life and Style
A picture taken on January 12, 2011 shows sex shops at the Paris district of Pigalle.
news
Sport
footballPremiership preview: All the talking points ahead of this weekend's matches
News
Keira Knightley poses topless for a special September The Photographer's issue of Interview Magazine, out now
people
News
ebooksAn evocation of the conflict through the eyes of those who lived through it
Voices
The Ukip leader has consistently refused to be drawn on where he would mount an attempt to secure a parliamentary seat
voicesNigel Farage: Those who predicted we would lose momentum heading into the 2015 election are going to have to think again
Arts and Entertainment
Cara Delevingne made her acting debut in Anna Karenina in 2012
film Cara Delevingne 'in talks' to star in Zoolander sequel
News
i100
Sport
Mario Balotelli pictured in his Liverpool shirt for the first time
football
Life and Style
tech
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

SAS Business Analyst - Credit Risk - Retail Banking

£450 - £500 per day: Orgtel: SAS Business Analyst, London, Banking, Credit Ris...

Project Manager - Pensions

£32000 - £38000 Per Annum Bonus, Life Insurance + Other Benefits: Clearwater P...

KYC Analyst, Birmingham - £200-£250 p/d

£200 - £250 per day + competitive: Orgtel: KYC Analyst, Key Banking Client, Bi...

Test Manager - Banking - Yorkshire - £450 per day

£400 - £500 per day: Orgtel: Test Manager - Banking - West Yorkshire - £400-£5...

Day In a Page

Ukraine crisis: The phoney war is over as Russian troops and armour pour across the border

The phoney war is over

Russian troops and armour pour into Ukraine
Potatoes could be off the menu as crop pests threaten UK

Potatoes could be off the menu as crop pests threaten UK

The world’s entire food system is under attack - and Britain is most at risk, according to a new study
Gangnam smile: why the Chinese are flocking to South Korea to buy a new face

Gangnam smile: why the Chinese are flocking to South Korea to buy a new face

Seoul's plastic surgery industry is booming thanks to the popularity of the K-Pop look
From Mozart to Orson Welles: Creative geniuses who peaked too soon

Creative geniuses who peaked too soon

After the death of Sandy Wilson, 90, who wrote his only hit musical in his twenties, John Walsh wonders what it's like to peak too soon and go on to live a life more ordinary
Caught in the crossfire of a cyber Cold War

Caught in the crossfire of a cyber Cold War

Fears are mounting that Vladimir Putin has instructed hackers to target banks like JP Morgan
Salomé's feminine wiles have inspired writers, painters and musicians for 2,000 years

Salomé: A head for seduction

Salomé's feminine wiles have inspired writers, painters and musicians for 2,000 years. Now audiences can meet the Biblical femme fatale in two new stage and screen projects
From Bram Stoker to Stanley Kubrick, the British Library's latest exhibition celebrates all things Gothic

British Library celebrates all things Gothic

Forthcoming exhibition Terror and Wonder: The Gothic Imagination will be the UK's largest ever celebration of Gothic literature
The Hard Rock Café's owners are embroiled in a bitter legal dispute - but is the restaurant chain worth fighting for?

Is the Hard Rock Café worth fighting for?

The restaurant chain's owners are currently embroiled in a bitter legal dispute
Caribbean cuisine is becoming increasingly popular in the UK ... and there's more to it than jerk chicken at carnival

In search of Caribbean soul food

Caribbean cuisine is becoming increasingly popular in the UK ... and there's more to it than jerk chicken at carnival
11 best face powders

11 best face powders

Sweep away shiny skin with our pick of the best pressed and loose powder bases
England vs Norway: Roy Hodgson's hands tied by exploding top flight

Roy Hodgson's hands tied by exploding top flight

Lack of Englishmen at leading Premier League clubs leaves manager hamstrung
Angel Di Maria and Cristiano Ronaldo: A tale of two Manchester United No 7s

Di Maria and Ronaldo: A tale of two Manchester United No 7s

They both inherited the iconic shirt at Old Trafford, but the £59.7m new boy is joining a club in a very different state
Israel-Gaza conflict: No victory for Israel despite weeks of death and devastation

Robert Fisk: No victory for Israel despite weeks of devastation

Palestinians have won: they are still in Gaza, and Hamas is still there
Mary Beard writes character reference for Twitter troll who called her a 'slut'

Unlikely friends: Mary Beard and the troll who called her a ‘filthy old slut’

The Cambridge University classicist even wrote the student a character reference
America’s new apartheid: Prosperous white districts are choosing to break away from black cities and go it alone

America’s new apartheid

Prosperous white districts are choosing to break away from black cities and go it alone