The future of the Bermudiana Hotel rests with private business and not Government, the Premier Pamela Gordon insisted last night.

Ms Gordon was speaking after English businessman Peter Clayton revealed an eleventh hour rival bid to develop the derelict property.

He has met with the Premier and Tourism Minister David Dodwell as well as ACE Ltd. and EXEL Ltd., who turned down his offer of co-operation.

Last night Ms Gordon said: "I made it clear when we opened the meeting that we did not possess any of the cards. We made it clear to Mr. Clayton that we have no part in this.'' Ms Gordon said she was concerned that the nature of her meeting with Mr.

Clayton had been misrepresented.

"We were visited as a courtesy call only. They came to us to outline what they would be doing with ACE and EXEL,'' said the Premier.

"We made it clear that we have no part in this. It is now between ACE, EXEL and Mr. Clayton. They are the only ones who can decide the future of that site.

"It is a closed issue as far as the Government is concerned,'' added Ms Gordon.

"This meeting was a call to say that if they were successful they would come back in a more formal way. That is where we left it.'' Mr. Clayton, chairman of London-based Financial Placements, recently took over the Bermuda Financial Centre Ltd. and with international backing launched an alternative plan for the property.

He wants to build three office blocks, a 100-suite hotel dedicated to business travellers as well as up-market condominiums. There would also be a pedestrian walk-through with cafes and shops in the $150 million scheme.

ACE and EXEL are waiting for planning permission for their office plan after being given permission to buy the land from Argus Insurance following the passage of the Bermudiana Site Rehabilitation Act.

However, Mr. Clayton wants a delay in the planning process to allow him time to speak to Argus about the site's future.

EXEL's senior vice-president Gavin Arton has already stated that the companies intend to go ahead with their scheme and are not willing to co-operate with Mr. Clayton.

However, he can still appeal if the Development Applications Board approve the scheme -- when the new Environment Minister Irving Pearman will have the final say.

When BFCL was taken over the deal included the resignation the company's directors.

Last night former president Neville Conyers said Mr. Clayton had been interested in coming to Bermuda for some time.

"BFCL shareholders contacted him and he came back with a financial scheme which seemed to fit the bill for everyone.

"He came up with a proposal to finance the whole Bermudiana situation and we said alright. He has got the goods, he has a tremendous team behind him,'' said Mr. Conyers.

The emergence of Mr. Clayton and his team was yet another twist in the Bermudiana saga.

BFCL failed to raise the $100 million needed after it gained planning permission to build offices, homes, a hotel and shops.

ACE and EXEL then revealed a deal to buy the property from Winson Holdings -- wholly owned by Argus Insurance -- and build offices for their companies.

MPs cleared the way for the scheme voting in favour of the Bermudiana Site Rehabilitation Bill which allowed 100 percent foreign ownership of the property.

Trading in the shares of BFCL has been suspended with immediate effect pending the release of a full announcement regarding a recent change in ownership and management of the company, according to the Bermuda Stock Exchange.

TOURISM TOU