![]() She contended that the firm had merely "responded to the incoming phone calls that we have received from Kidder Peabody professionals".ĭean Witter said it was "surprised" by the lawsuit, "and believes it is totally without merit". "Donaldson, Lufkin &Jenrette did not initiate any contact whatsoever with any current Kidder Peabody professionals." "Kidder professionals have a right for whichever firm they choose," Ms Cathy Conroy, a Donaldson, Lufkin spokeswoman said. Mr Joseph Grano, who runs Paine Webber's retail brokerage operations, said the firm had not yet had an opportunity to discuss the details of the Kidder takeover with Kidder's brokers and it thought it needed to act quickly to stem defections untilįor their part, Dean Witter and Donaldson, Lufkin & Jenrette denied any wrongdoing in hiring Kidder's brokers. Sometimes, securities firms will match or exceed offers from rivals to keep their best people. Still, Paine Webber's lawsuits stand out in a competitive industry in which rivals routinely hire top producers away from each other with lucrative bonuses and incentives. Several of the brokers who have left Kidder since the Paine Webber takeover was announced on October 17 pulled in $1 million or more in commissions each year. Paine Webber requested a court order to stop both firms from continuing their hirings, lest it lose hundreds of Kidder's best brokers. ![]() ![]() In separate lawsuits, filed in New York City and Chicago, Paine Webber has contended that the recent hiring of Kidder brokers by Donaldson, Lufkin &Jenrette Inc and Dean Witter Reynolds Inc constituted a raid that could jeopardise its deal to buy Kidder from General Electric Co for $US670 million($900 million) in stock. SEEKING to prevent wholesale defections at Kidder Peabody & Co, the Paine Webber Group Inc has sued two rivals accusing them of offering "exorbitant"financial incentives to lure Kidder's top brokers away before Paine Webber completed its takeover of Kidder.
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