A deal to take over the Bermudiana Hotel site has been welcomed by Government as another opportunity to rid the Island of an eye-sore and safety hazard.

However Finance Minister Grant Gibbons stressed that the deal was still in its early stages and no official approach had yet been made to Government.

Ace Ltd. and Exel Ltd. have joined forces to forge a deal to buy-out Winson Holdings Ltd, the owners of the Bermudiana site, from Argus Insurance.

The deal depends on getting planning permission for the site and an exemption from Government of the 60/40 rule which dictates that businesses should be at least 60 percent Bermudian owned.

Dr. Gibbons said: "This proposal, as noted by Ace General Counsel Peter Mear, is in a preliminary stage.

"It should be stressed that as it is only an agreement in principle no share transfer has taken place.

"The Finance Ministry has not received a formal application for permission to proceed with the share transfer from any of the parties.'' In the past the 60/40 rule has been a major stumbling block in developing the site, hindering big business moving in with the necessary cash needed to develop the site.

Ace and Exel combined will have the necessary money to demolish and rebuild the Bermudiana area.

Dr. Gibbons added: "The Bermudiana site, in its current condition, represents a lost opportunity for Bermuda as well as an eyesore and safety hazard.

"While a number of proposals have been put forward to develop this site, Government is pleased to have the opportunity to consider another possible approach to resolving this long-standing problem.

"Government has a long, successful history of working in partnership with the private sector to enhance Bermuda's economy and image and we remain confidant that a solution will be found that will benefit all Bermudians.'' One of the projects put forward to rebuild the Bermudiana site came from the Bermuda Financial Centre (BFCL).

It has won planning permission for offices on the site and eventually wants to build a hotel and luxury homes.

It is not known how the Ace and Exel plan will affect BFCL and director Fraser Butterworth declined to comment on the situation.

GOVERNMENT GVT