Two businessmen who quit limousine service Bermuda Hosts after a fellow-shareholder got permission to set up a rival business may strike out on their own.

David (Butch) Whitecross and Ted Powell have sold their shareholding in the firm, whose other shareholders include ex-Transport Minister Wayne Furbert and his father Calworth, as well as Bermuda Small Properties' Stephen Martin.

It is understood Mr. Martin has bought out the two men's holdings in the firm and is now the majority shareholder and president.

Calworth Furbert has now assumed the role of general manager, replacing Mr.

Whitecross.

Mr. Furbert, although remaining a shareholder, will continue to play a hands-off role.

Mr. Whitecross confirmed he had quit the firm, but declined to comment on whether he would be continuing in the same line of work as Bermuda Hosts.

Mr. Martin confirmed: "The only thing I can comment on is that Mr. Whitecross is no longer the manager of the company.

"We wish him well and all the best in his future endeavours.'' Mr. Martin said he had already had a meeting with staff at the transport firm.

He added: "We advised them of what would take place and I think it's fair to say that the reaction was a positive one and everyone is looking forward to the future.'' Mr. Martin said he had "changes planned'' for the firm -- but declined to go into details.

He added: "We're going to take a really long look at where we want to go.'' Mr. Martin was plunged into controversy after it was revealed Bermuda Small Properties had been granted a limousine licence -- a licence he later announced he would not be taking up.

The move infuriated businessman David Durham, who tried for three years to set up a similar operation.

And the Bermuda Industrial Union's taxi section -- which feared a new firm would cut their business -- called for the licence to be withdrawn.

Mr. Martin later said he had planned a new service "featuring primarily taxis, supplemented by two buses.'' He added that the service would have given Bermuda's visitors more choice -- and boosted the taxi sector.

And he insisted there had been "never any intention to hurt the taxi industry.'' Mr. Martin said yesterday: "What we want to do is utilise the taxi transport system at the Airport. Taxis are a very important part of that and we want to offer a greater choice to the visitor when he arrives in Bermuda.

"But we won't come out and do these things until we have talked to all the players -- that will take some time to get right.''