and corporate finance subsidiary, Seymour Pierce Butterfield for nearly $2.75 million.

The bank exited the business, which trades under the name Butterfield Securities, at a small premium -- achieving a small profit over the net asset value of the company.

It brought a happier than expected end to a long term problem for the Bermuda bank.

Talisman House Plc has purchased the unit that trades under the name Butterfield Securities. The deal was first announced last month. The bank said this weekend the transaction closed on December 2.

Graham C. Brooks, executive vice president, international & trust said yesterday, "Our book value was approximately $2.5 million. After expenses and allowances, we got just a bit under $2.75 million, representing an almost 10 percent premium, even after expenses.

"We felt we wanted to exit the company because it was very small and had no synergy with the rest of the group. We had to go into the market and see what kind of interest there was there.

"We felt we made a good exit because it was a good clean exit with the purchaser taking over all of the liabilities.

"We think the price was fair. There was a small premium, which was favourable to book value even after all of the costs and expenses of having advisors and lawyers involved.'' The bank achieved a 20 percent premium but held back money for contingencies as a result of the negotiated items that were expected to follow. The emphasis was to ensure that there would be no ongoing indemnities.

The transaction was said to have had no effect on the bank's other UK business, Davenham Group Plc, which operates out of Manchester and provides specialised lending services to the corporate sector.

Butterfield Securities was purchased in 1987 and its history has been a virtual haemorrhaging of money.

Four years ago at the end of 1994, the bank said it was downsizing the subsidiary, withdrawing from private client stockbroking in the UK and placing more emphasis on expanding its discretionary fund management business. The half year figures were out two months later showing how it took a beating on securities trading to December 1994.