company's president and chief executive officer said yesterday.

Mr. Arthur E. Haycock, said:"I think the controversy is behind us.

"It is up to us to prove to our customers and real estate individuals we are going to be serious about internal policy and careful not to allow conflicts of interest.'' Mr. Haycock made the statement as the merger of the Bank of Bermuda's real estate division and L.P. Gutteridge Ltd., announced on March 7, was officially finalised yesterday.

Controversy stemmed competing realtors' fears that the new business would dominate the market and effectively bring agents for the buyer and the seller closer together.

Mr. Haycock stressed lending staff will not steer clients away from other agents to the real estate division. Management or staff do not want this to happen, he continued.

"Our intention is not allow conflicts,'' commented Mr. Haycock. "Staff will know the policies,'' he continued.

With the announcement of the completion of the merger, Bermuda Home, with assets over $450 million, is now listed on the Bermuda Stock Exchange. No trading has taken place yet.

But distribution to shareholders, who will have 50 percent ownership (the Bank of Bermuda and L.P. Gutteridge Ltd. will split the remaining half of the shares) is slated to begin today. The company will have 3,713,400 total issued shares.

In the latter half of June, a rights issue of $15 million in shares is expected.

Shareholders' equity in Bermuda Home is valued at $25 million.

Trading on the Bermuda Exchange has been slow recently and it remains to be seen if the new listing will cause increased activity.

Mr. Haycock said he hopes the shares will be attractive. He agreed it is possible those interested in the local exchange have held back trading activity waiting for Bermuda Home's rights issue.

But until the stock starts trading it will be difficult to tell how it will perform, he added.

The rights issue will be underwritten by the Bank of Bermuda. Bermuda Home Limited will work in areas of call and term deposits, mortgage facilities and consumer loans.

Mr. Haycock added: "Bermuda Home will be perfectly positioned to meet the growing needs of people looking to secure mortgages and consumer loans and those seeking opportunities to deposit Bermuda dollars for longer terms at attractive interest rates, with the knowledge that such deposits are secured by first mortgages on prime Bermuda real estate and backed by a company with significant capital.'' Mr. David P. Gutteridge, President of L.P. Gutteridge Limited, who will also serve as Executive Vice President of Bermuda Home, said: "Bermuda Home will become a valuable independent source for those seeking mortgages, consumer loans, and expertise in financial and real estate planning.

"Discussions between the Bank of Bermuda Limited and LP Gutteridge Limited started early this year and have been amicable from the start. While we have been keen competitors over the years, our philosophies have always been the same, which enabled us to approach this merger with mutual respect.'' The merger includes; Bermuda Mortgage and Finance Limited; LP Gutteridge Mortgage & Finance Limited; the real estate division of the Bank of Bermuda Limited and; the Real Estate Division of LP Gutteridge Ltd. under the name of Bermuda Realty Company Ltd.

Directors of Bermuda Home include; Mr. Donald P. Lines, chairman, Mr. Paul A.

Leseur, deputy chairman, Mr. Arthur E. Haycock, president and chief executive officer, Mr. David P. Gutteridge, executive vice president, Mr. Francis H.P.

Patterson, senior vice president and chief financial officer and secretary, Mr. W. Wayne Jackson, senior vice president, real estate and administration.

Other directors include Mr. Antony C. Brewer, Mr. Garry A. Madeiros, Mr. J.J.

Outerbridge Jr. and Mr. Alan F. Richardson.