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

Start your day with The Independent, sign up for daily news emails
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

Recruitment Genius: Sales Assistant / Buyer

£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...

Recruitment Genius: Customer Service Advisor

£15000 - £16000 per annum: Recruitment Genius: Customer Service Advisors are r...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE £45K: SThree: SThree were established in 1986....

Recruitment Genius: Compliance Manager

£40000 - £60000 per annum: Recruitment Genius: A Compliance Manager is require...

Day In a Page

Is this the future of flying: battery-powered planes made of plastic, and without flight decks?

Is this the future of flying?

Battery-powered planes made of plastic, and without flight decks
Isis are barbarians – but the Caliphate is a dream at the heart of all Muslim traditions

Isis are barbarians

but the Caliphate is an ancient Muslim ideal
The Brink's-Mat curse strikes again: three tons of stolen gold that brought only grief

Curse of Brink's Mat strikes again

Death of John 'Goldfinger' Palmer the latest killing related to 1983 heist
Greece debt crisis: 'The ministers talk to us about miracles' – why Greeks are cynical ahead of the bailout referendum

'The ministers talk to us about miracles'

Why Greeks are cynical ahead of the bailout referendum
Call of the wild: How science is learning to decode the way animals communicate

Call of the wild

How science is learning to decode the way animals communicate
Greece debt crisis: What happened to democracy when it’s a case of 'Vote Yes or else'?

'The economic collapse has happened. What is at risk now is democracy...'

If it doesn’t work in Europe, how is it supposed to work in India or the Middle East, asks Robert Fisk
The science of swearing: What lies behind the use of four-letter words?

The science of swearing

What lies behind the use of four-letter words?
The Real Stories of Migrant Britain: Clive fled from Zimbabwe - now it won't have him back

The Real Stories of Migrant Britain

Clive fled from Zimbabwe - now it won’t have him back
Africa on the menu: Three foodie friends want to popularise dishes from the continent

Africa on the menu

Three foodie friends want to popularise dishes from the hot new continent
Donna Karan is stepping down after 30 years - so who will fill the DKNY creator's boots?

Who will fill Donna Karan's boots?

The designer is stepping down as Chief Designer of DKNY after 30 years. Alexander Fury looks back at the career of 'America's Chanel'
10 best statement lightbulbs

10 best statement lightbulbs

Dare to bare with some out-of-the-ordinary illumination
Wimbledon 2015: Heather Watson - 'I had Serena's poster on my wall – now I'm playing her'

Heather Watson: 'I had Serena's poster on my wall – now I'm playing her'

Briton pumped up for dream meeting with world No 1
Wimbledon 2015: Nick Bollettieri - It's time for big John Isner to produce the goods to go with his thumping serve

Nick Bollettieri's Wimbledon Files

It's time for big John Isner to produce the goods to go with his thumping serve
Dustin Brown: Who is the tennis player who knocked Rafael Nadal out of Wimbeldon 2015?

Dustin Brown

Who is the German player that knocked Nadal out of Wimbeldon 2015?
Ashes 2015: Damien Martyn - 'England are fired up again, just like in 2005...'

Damien Martyn: 'England are fired up again, just like in 2005...'

Australian veteran of that Ashes series, believes the hosts' may become unstoppable if they win the first Test