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Deuss behind scenes in Bermudiana negotiations

Oil millionaire John Deuss has played a behind-the-scenes role in efforts to develop the Bermudiana Hotel site, it emerged yesterday.

However he did not lobby MPs to back a foreign bid to build on the land and has no economic interest in the plans, according to a senior executive at EXEL Ltd., which with ACE Ltd. wants to build offices on the site.

Gavin Arton, EXEL's senior vice-president, was responding to claims made by Neville Conyers, president of the Bermuda Financial Centre Ltd. which is battling to raise funds to launch a rival bid to develop the site.

He claimed Mr. Deuss lobbied MPs to back a private Bill bypassing Bermuda's 60/40 rule to allow ACE and EXEL to own the land.

Mr. Conyers also claimed that BFCL, a Bermuda company, had repeatedly offered to work with ACE and EXEL but was effectively snubbed.

Yesterday Mr. Arton rebuffed the claims saying EXEL and ACE were involved in discussions with BFCL before and after their joint bid to build on the Bermudiana site was launched.

He also said Mr. Deuss was involved but purely as a "facilitator'' with no financial interest of his own and he dismissed claims that a third, unnamed party, was involved in the ACE/EXEL bid.

"It is not that we are refusing to talk with BFCL, we are just not interested in their proposals for a hotel and condominiums.

"We talked with BFCL and we reviewed their proposal and subsequent to our coming forward with our own proposal we have had dialogue with them,'' said Mr. Arton.

"Mr. Deuss has had a role in encouraging the process to go forward, but he does not have an economic interest. It is more an interest in cleaning up an eyesore that he gets to look at.'' ACE and EXEL have set a deadline of the end of March for the deal to buy the Bermudiana site from Argus Insurance to go through.

It hinges on getting planning permission for their office scheme as well as bypassing Bermuda's 60/40 rule.

Originally BFCL wanted to develop the site but could not meet loan repayments and Argus Insurance took control through a company called Winson Holdings.

Last year ACE and EXEL agreed to buy Winson and take control of the site -- subject to planning permission and approval of a private Bill by-passing Bermuda's 60/40 rule.

The Bill passed its first stage when it was approved by a House of Assembly committee and will go before all MPs next month.

In the meantime BFCL launched a counter bid saying it was in negotiations with backers to raise cash to go ahead with the project.

Last night Stanley Lowe, the committee chairman, said he was not aware of any lobbying of MPs by Mr. Deuss. He said he could not comment further.