NCB Stockbrokers is considering whether to pursue a legal action against seven former staff who left the firm this week to set up a rival group.

A spokesman told The Irish Times last night it has now received legal advice in relation to the manner of the high-profile staff members' departure. "We have been advised by our legal advisers that we have grounds for legal action and are considering that," he said. The firm was dealt another blow yesterday with the departure of another of its equity research team, Mr Rory Gillen. He is joining Merrion Capital, the company formed by the seven former NCB employees. The firm will be headed by NCB's former deputy managing director, Mr John Conroy.

NCB said Mr Gillen's departure had been expected. It is unclear as to whether any further staff members will move to Merrion, although Merrion is not expected to hire further staff in the short term.

"If others want to go, then the sooner the better. We are just interested in getting on with it," a spokesman said. He also pointed out that the firm has weathered other high profile departures over the years.

In a statement on Tuesday, NCB accused Mr Conroy of being in breach of his contract and not acting in the best interests of NCB and its customers.

NCB is understood to be particularly concerned about the use of any of the firm's information base by its new rival. Former NCB executives who have moved to Merrion Capital include its head of equity sales, Mr Barry Connell, director of corporate finance, Mr Pat Landy, head of equity research, Mr Shane Nolan, head of IT development, Mr Kevin Kilty, and head of telecommunications, Mr Derek Crawley.