launching a bid to merge with the Bank of N.T. Butterfield & Son Ltd.

Senior executive vice president, Luis A. Douglas, said that the rumours of consolidation between the two financial institutions were not true.

Mr. Douglas stated: "I'm certainly not aware of it, and I would be, if it was true.'' And Bank of Butterfield CEO, Calum Johnston, responded, "I know nothing about it.'' Asked about the Bank of Bermuda's holding of Butterfield stock, Mr.

Douglas conceded that bank's are likely to hold stock in each other as part of investment portfolios, but he doubted that the share holding would comprise any significant percentage of the outstanding stock.

"I'm sure we have some of their stock and they have some of our stock,'' he speculated. "But it would not be anything significant. It would normally be a small holding.'' Both banks would have to expand their capital base to seek to compete in the powerful financial institutions of today. The Bank of Bermuda is seeking Parliamentary approval to waive its 60:40 share holding restriction, allowing it to raise further capital internationally by listing on the Nasdaq exchange.

Last year, the Bank of Butterfield adopted a similar "poison pill'' taken by their larger Bermuda competitor that would make an unfriendly take-over harder and more expensive. A bill to that effect has already won Parliamentary approval.