the merger of the weekly newspaper with Island Press.

Bermuda Sun chairman the Hon. Sir John Plowman said yesterday that Island Press shareholders agreed to the merger plan at their December 15 AGM.

Sir John, who stepped down as president of Island Press at the meeting, said a letter will soon be sent out to Sun shareholders making the proposal, which has been recommended by the newspaper's board.

The merger proposal would see Sun shareholders receive one share in Island Press for every 10 Sun shares they currently hold. The Sun would then become a wholly owned subsidiary of Island Press.

Sun managing director Mr. Randy French said any comment on the proposal should come from Mr. Warren Brown, who replaced Sir John as Island Press president at the AGM. Mr. Brown is off the Island.

Bermuda Sun shares traded yesterday for the first time since July 1990, closing down 75 cents at $5 on volume of 250.

Island Press shares last traded for $5 on December 6. In its most recent results announced earlier this month, it reported a net loss of $130,000.

The company made a trading profit of $244,000 but turned in a loss partly as a result of the write off of the company's investment in the newspaper, and the provision of $108,000 for possible bad debts.