Astwood-Dickinson Company and Colombian Emeralds International have reached an agreement giving the huge Caribbean-based jewellery group 40 percent ownership of the Bermuda business, it was revealed.

"We (Astwood-Dickinson owner Tommy Dickinson and Colombian Emeralds) have reached an agreement in principle,'' Colombian Emeralds' majority shareholder, Stephen Crane, currently in Bermuda, said.

Once the deal is officially concluded in early 1997, Mr. Dickinson will remain majority owner, holding 60 percent of the business.

Last month, Mr. Dickinson confirmed he was selling a stake in his Front Street operations to Colombian Emeralds.

The move may start a shake-up in the jewellery segment of Bermuda's retail sector. Will Little Switzerland, Inc., the second largest player in the Caribbean, forge a partnership with another Bermuda jeweller? Colombian Emeralds was the first foreign or outside jeweller to expand into Antigua, St. Lucia, Barbados and Cayman Islands. Little Switzerland has, on more than one occasion, followed Colombian Emerald's footsteps.

"Colombian Emeralds is not a predator company. We are an asset to any business environment in which we function.

"We've grown to be a strong organisation because we believe in training locally and training to international standards,'' Mr. Crane said.

"We substantiate the duty free shopping. The market increases to the benefit of everyone.'' Colombian Emeralds -- "the world's leading emerald jeweller and the Caribbean's largest luxury duty free retailer'' -- was started in the islands by islanders and is owned and operated by islanders, Mr. Crane said.

The group is privately owned by a handful of individuals, of which Mr. Crane is the majority shareholder.

"We are very sensitive to the fact that each island is distinct and individual,'' he said.

"As for coming into Bermuda, we are very excited.'' Asked about entering a market where tourism numbers are declining -- Mr. Crane was optimistic about Bermuda's ability to rebound.

"I think Bermuda is conscious of the fact that it needs to readdress (tourism). That's half way to solving the problem.'' On Colombian Emeralds' selling style, Mr. Crane said the group advertises a lot and demands a lot from staff.

"If that's aggressive (so be it). We are trying to conduct business to an international standard.'' The group has prospered because it fills a niche market.

Mr. Crane estimated that emeralds make up less than seven percent of the average North American jewellers gem inventory whereas at Colombian Emeralds, the percentage is over 60.

Specialising in one stone not readily available in Europe or the US has greater appeal, he added.

Only two months into its fiscal year, Mr. Crane predicted the group will have revenue over $150 million. He declined to divulge prior year's revenue, a year which included devastating hurricane activity in the Caribbean.

Little Switzerland, like Colombian Emeralds has stores in the Caribbean linked revenue decline directly to hurricanes.

NASDAQ-traded Little Switzerland reported profit of $915,000 for the fiscal year to June 1 on revenue of $62.9 million. In the prior year, the company made $3.7 million on revenue of $72.2 million.

Because of the downturn due to catastrophe, Colombian Emeralds put two of its about 50 corporations into Chapter 11 bankruptcy.

"After hurricane activity, it became apparent we should downsize in the US Virgin Islands,'' Mr. Crane said.

The filing of Chapter 11 bankruptcy protection under US rules is part of a reorganisation and affects a tiny part of the group's operations, he said.

"Chapter 11 allows you make a healthy company strong in a difficult situation.'' Mr. Crane anticipated the final details of the reorganisation under Chapter 11 will be complete in a week to ten days.

As well as Caribbean operations, Colombian Emeralds also has stores in Alaska.

Alaska stores generate about five percent of the group's revenue, Mr. Crane said.

STEPHEN CRANE -- Colombian Emeralds now owns 40 percent stake in local jeweller.