Local long-distance phone company TeleBermuda International has won the right to be completely foreign-owned.

Restrictions which allowed the telecommunications firm to be up to 80 percent foreign owned have been lifted, freeing the way for 100 percent foreign ownership, it emerged yesterday.

But TBI vice-president and general counsel Lin Gentemann stressed that total foreign ownership was not the company's intention when it sought the amendment to its licence.

Instead it was to aid the firm's ability to compete, she said last night.

"We are looking for the ability to effectively compete in an industry which requires a significant amount of capital.

"We are a Bermudian company and we fully expect to have Bermudian shareholders as we move forward.'' Ms Gentemann pointed out that the company needed the freedom to raise the funds required to operate from either Bermudian or non-Bermudian sources.

"We are quite excited about getting the opportunity to seek funds from here and elsewhere.'' The arrangement comes after talks with Government and follows a 1996 concession which saw the firm granted a licence which exempted it from local law that requires local companies to be at least 60 percent Bermudian owned.

The new licence, dated March 24 of this year and in force until December 31, 2002, was issued by Finance Minister Grant Gibbons subject to the condition that reasonable endeavours be made to offer shares to Bermudians.

Such reasonable endeavours include: advertising the offer prominently in a Bermuda newspaper; appointing a local sales agent, underwriter or dealer; making available in Bermuda any prospectus that is issued by the Company in connection with the offer; making shares available to Bermudians at a price and on terms at least as favourable as those offered to non-Bermudians; and taking subscriptions for shares in Bermuda.

TeleBermuda wins right for total foreign ownership And it stresses: "Notwithstanding such reasonable endeavours, there shall be no minimum level of shares beneficially owned by Bermudians.'' The Bermuda Stock Exchange was informed of the news yesterday by Ms Gentemann.

In a letter to BSE Head of Listings, James McKirdy, Ms Gentemann wrote: "I am writing to advise you of an amendment to the Company's Section 114B Licence that effectively lifts the restriction which provided: `That the percentage of shares in the Company beneficially owned by Bermudians shall not be less than 20 percent in the aggregate of the total shares issued by the Company.'' Ms Gentemann also informed Mr. McKirdy of the Bermuda Monetary Authority revoking its 20 percent condition on the Company.

And she added: "The amendment was sought to enable the Company to obtain the flexibility it requires in order to raise funds locally and internationally, and to effectively compete in the changing global telecommunications market.''