Cable TV bosses fighting off a hostile takeover bid have yet to decide whether to seek exemption to Bermuda's 60/40 ownership rules.

Last November, Bermuda Cablevision (BCL) signalled its intent to seek Government permission for exemption with an advertisement in the Official Gazette.

However two-and-a-half months later BCL has yet to officially apply under the Companies Act for an exemption.

BCL's owner, the American-based McDonald Group, is fighting the Bermuda Telephone Company for control of BCL.

Telco claims BCL's structure and the payment of 60 percent of its profits as consultancy fees to the McDonald Group is in breach of Bermuda's 60/40 rule.

However the McDonald Group maintains the Bermuda Government approved the present structure and fee payments in 1987.

The Finance Minister can grant the exemption -- which can relate to the directors, share ownership and profit payments -- if he thinks it is in the public interest to do so.

A spokesman for the McDonalds said an application for 60/40 exemption should not be seen as an admission that BCL's set up breached the 60/40 rule.

Yesterday the spokesman added: "The matter of whether to apply for exemption under the Companies Act is still under consideration.'' He said he could not comment further.