The world of small stockbrokers was thrown into the limelight today as former employees launched an audacious bid for Blue Oar, while Ambrian and Panmure Gordon confirmed that they are in merger talks.

The various deals -which total around £52 million - are the latest manifestation of how tough life has become for small broking firms as the number of companies coming to the stock market and the amount of dealmaking they do have fallen off a cliff since the credit crunch really began to bite this year.

Profits at broking firms and the bonuses paid to their staff have slumped in the past six months.

The bid for Blue Oar comes from a consortium led by one of the broking firm's original founders of what was then Corporate Synergy, Edward Vandyk along with a number of former directors.

Between them they already hold a 32% stake in Blue Oar.

But the all-share offer from Vandyk's Evolve Capital is likely to be roundly rejected by Blue Oar's feisty chief executive Andrew Monk.

In the meantime, Blue Oar's chairman Oliver Vaughan and another director David Snow have resigned from the board as they are members of the raiding party.

Former London Stock Exchange chief executive Gavin Casey is standing in as the new chairman.

It is believed that Monk and his team can speak for at least 20% of Blue Oar's shares.

However, Evolve says its offer is conditional on its receiving acceptances for 50.1% of the shares. Given it already has 32% that means it only needs to sway holders of a further 18%.

Vandyk said that he is concerned at the rate at which Blue Oar has been burning cash in recent times.

He said: "The preservation of Blue Oar's financial resources is urgently required to secure the long-term future of the business."

Vandyk also plans to refocus Blue Oar on private client stockbroking and wealth management and revive the Rowan Dartington brand name.

One of Vandyk's backers is Barrie Newton, the founder and former managing director of Rowan Dartington, who owns 5.75% of Blue Oar. Other former Rowan Dartington directors and employees are believed to own a further 15% or so of Blue Oar.

Separately, Panmure and Ambrian - both of which are listed on the AIM - said that their talks were at an early stage but could not even divulge which firm would bid for which.