THE publishing world is in the grip of a real-life thriller about a glamorous executive, celebrity clients and a host of disgruntled onlookers hoping for an unhappy ending.

Events centre on Caroline Michel, an elegant publisher whose meteoric career in literary circles has inspired admiration and envy. She has been head-hunted to become chief executive of PFD, one of London’s leading literary and talent agencies - only to find that several of its top staff have already decided to leave to launch a rival.

PFD’s clients include Tom Stoppard, Ricky Gervais, Nick Hornby and Alan Bennett. Among the departing agents are Pat Kavanagh, who is married to the writer Julian Barnes, Anthony Jones and Maureen Vincent. Other rumoured departures include Caroline Dawnay and Simon Trewin. The agents are likely to take many of their famous clients with them.

Ruth Rendell, the crime writer, said: “I’ll stay with Pat Kavanagh wherever she goes. She has been my agent for 26 years. In fact she is not only my agent but a very good friend, too.”

Robert Harris, whose latest book, The Ghost, is published in early October, said he would also be loyal to Kavanagh. “It’s all about individuals, and the relationship between author and agent,” said Harris, whose previous bestsellers include Enigma, Pompeii and Imperium. “I’m not a commodity to be bought by some other company.”

Ann Widdecombe, the Tory MP and author, said: “I’m writing my fifth novel now with Caroline Dawnay as my agent, and I won’t be budging from her.”

A certain schadenfreude is evident among envious literary figures at the prospect of Michel arriving to find her new empire collapsing around her.

Michel, who is married to Lord Evans, the former boss of Faber & Faber, came to prominence when she set up Vintage Books, a successful imprint at Random House. She left to join HarperCollins before moving on to William Morris, the world’s biggest talent agency.

Renowned for her charm, she fed her contacts book with celebrity lunches at top London restaurants. Her social circle includes actors such as Sean Connery, film producers such as Eric Fellner of Working Title, and TV presenters such as Simon Schama. She recently persuaded Lord Attenborough, the director and actor, to write his memoirs.

Inevitably, perhaps, not all her projects were successful. A promised biography of Sean Connery failed to happen, and an expensively commissioned book by Greg Dyke sold poorly. But Michel moved ever upwards.

The announcement of her appointment by PFD’s parent company dashed the hopes of several of its leading agents to buy out the agency. They decided to quit to start their own agency, though exactly how many may leave remains unclear. Kavanagh seems certain to go. She said: “I have resigned, though I have as yet not actually left my job.”

She denied that she was leaving because she would not be happy having Michel as her boss, saying she decided to go before she knew of Michel’s arrival. According to Michel, they are old friends who see each other socially. “In fact Pat has been a mentor of mine,” she said. “But, yes, she is also a woman of very strong views.”

Michel said yesterday that she remains optimistic about persuading key staff to stay. “It is incredibly important to keep the agents at PFD,” she said. “I have talked already to quite a few of them with new propositions. It is very early days, but I am hopeful. An agency is a people business, and agencies work best when they have consistency. PFD has a terrific tradition built up over many years and I want to keep that, and improve it.”

Michel, who recently brought Jeanette Winterson to William Morris, and looked after the London interests of some of the American-based agency’s Hollywood clients, already has some allies at PFD. Veteran agent Michael Sissons is believed to have been a key player in luring her. He is a leading figure among the “old school” of literary agents and has specialised in working with politicians on their books. His clients have included Margaret Thatcher, John Major, Chris Patten and William Hague.

And the writer and television presenter Alain de Botton also seemed to welcome Michel, although he is represented by PFD’s Dawnay. “Caroline Michel has the biggest address book, the most engaging smile, the most flattering manner and the greatest appetite for novelty and literary success in London publishing,” he said.

Explore Books

• Book Extracts

• Book Reviews

• Books Group

• Audio Books

Times Recommends

• Jane Bussman's Top 10 journalism tips
• Why do Pynchon, Ballard and Wallace provoke such online loyalty?
• The Sunday Times 100 best holiday reads