In the case of a difficult personality, you have to be assertive with the person. As a PM, you have assumed a management position, and have the right to impose order. Even with someone kicking and screaming, you must make change happen.
Start with a private conversation or email to the person, and ask him to stop this unreasonable and unprofessional behavior. Stress the fact that change is mandatory, and everyone must follow with no exceptions. You can even tell him to consider this a warning.
If this doesn’t work, then engage higher authorities, such as the person’s manager. Someone with the ability to affect his review – and therefore his raise – has the leverage to calm his misbehavior.
Also, consider training another team member with the person’s responsibilities. Make sure that if you no longer want him on the team, you can disposed of him easily. Even if he is the key player right now, with the way he is acting, he won't be for long.