shareholders of mortgage lender Bermuda Home Ltd. -- putting an additional $3 million on the table.

The day after announcing a December 4 offer of $14.50 for each common and preferred share, the bank raised their bid by 75 cents and presented a new offer of $15.25 per share.

Bermuda Home said in a statement yesterday that the offer price was increased as a result of discussions they had with the bank on Monday.

The Home statement said, "The (Home) board is conscious that with the announced re-entry of the bank into the local mortgage market, (Home) would face increased competition in a market limited by size.

"This and other factors could result in slower growth over the next few years, compared to that which has been achieved since the company became publicly owned in 1994.

"At the revised price, shareholders are offered a substantial premium to the price currently obtainable in a somewhat illiquid market, and have the benefit of receiving cash proceeds which are immediately available for reinvestment.

"In light of the improved offer, the directors of the company have personally elected to accept the bank's offer in respect of shareholdings.'' The new offer was a clear indication of how quickly the bank wants the deal done. They said on Monday they could actually pay for the shares before Christmas, which may have been an incentive for smaller shareholders to get additional spending money for the holiday.

The latest offer would re-value the deal from about $60 million to some $63 million -- some 22 percent of which will go to directors and officers.

The change also re-values the company from nearly $80 million on Monday to nearly $83.8 million yesterday.

The surprise came, as Bank of Bermuda president and CEO Henry Smith explained, "While we believed our initial offer to be fair, it became evident that by increasing the price to secure the agreement of a number of substantial shareholders to tender their shares, we could expedite completion of the transaction.'' Bank sweetens deal for Home A press statement said: "The bank confirmed that since the announcement yesterday, it has entered into agreements with shareholders, including directors of Bermuda Home acting in their individual capacities as shareholders of the company, who collectively hold approximately 1.5 million common shares and 250,000 preferred shares.'' Mr. Smith said, "This represents a considerable step toward satisfaction of our minimum requirement. We look forward to acceptance of this improved offer by the remaining shareholders, which will enable us to complete the acquisition promptly.'' Bermuda Home would be a bank subsidiary that continues to function independently, but with expanded operations, and new products and services.

The bank's mortgage and some lending activities will also be transferred to Bermuda Home. According to Bermuda Home's consolidated statement of income for the first six months of this financial year, at September 30 the directors and executive officers held a total of 1,042,143 common shares and 165,351 preferred shares. Those shares are today worth $18,414,283.50. At September 30, Bermuda Home's consolidated balance sheet lists total assets of more than half a billion dollars ($588,208,122), up year-over-year by nearly $48 million.

Most of those assets are comprised of customer deposits ($520.7 million).

Meanwhile, the company was owed in loans and mortgages $30,550,000 and $424,586,000, respectively.