acquisition of a leading offshore investment house with $800 million under management and membership on the London Stock Exchange.

It is a significant development in the bank's programme, under senior vice president of investments Peter Mellor, to restructure the investment division for the future.

It brings client assets under management by the bank's investment division to over six billion dollars.

Founded in 1912, Jersey-based Le Masurier, James & Chinn (LMJC) is described by the bank as one of the most respected and conservatively managed financial institutions in Jersey. It is also the Channel Island's oldest stockbroking and investment management company.

Effective December 31, the bank acquired 80 percent of LMJC's shares from majority owner since 1986, Banque Indosuez, one of France's leading investment banks. The outstanding 20 percent came from a minority shareholder.

Bank Indosuez sought to sell LMJC after a strategic review determined their need to concentrate resources on core investment banking business.

The Bank of Bermuda's senior vice president, investments, Peter Mellor, said the acquisition significantly expanded the local bank's investment capacity in Europe.

He added: "In particular, LMJC's portfolio advisory and securities execution services complement our existing private client asset management services offered through our London base.

"In addition, our own stockbroking company, Bermuda International Securities Ltd. (BISL), will benefit from LMJC's membership of the London Stock Exchange and their ability to serve clients' needs in the European time zone.'' BISL is a member of the Bermuda Stock Exchange. But when the bank sought to buy and sell securities on the London Stock Exchange, it had to deal through a member. Now, it will be able to deal through its own offshore member.

Mr. Mellor said, "Being offshore gives you some advantages. You can construct some of your business activity in an offshore environment like Bermuda or Jersey, with certain tax advantages.

"This is another step in building our financial services capability in Europe. It is a great platform for us. It is an excellent company, a well respected, well managed, old, traditional firm that is very much in line with our own culture and style. It's pretty unique to find one that is offshore and also a member of the London Stock Exchange.

"Le Masurier, James & Chinn has an excellent reputation in Jersey. It's clients, in the main, are drawn from leading Jersey-based professional advisors, trustees, banks and other financial intermediaries. Together, with the bank's broad range of financial and investment services, LMJC will be well placed to meet our clients' ever growing list of requirements.'' The bank also has a trust company based in Jersey, Bermuda Trust (Jersey) Ltd., acquired in 1995.

Peter Mellor