Uncertainty for Sonesta staff facing the possible sale of the hotel heightened when a war of words erupted over its future.

Just days after Sonesta owners Aetna Insurance announced they had broken off negotiations with a New Jersey property developer, the would-be buyer claimed the sale was back on.

And a spokesman for James M. Dwyer Real Estate Investment fired a salvo at Aetna management, threatening to "go up the chain of command'' in their quest, vowing that "we will be the owners by the end of the year''.

Mike McKeever, chief financial officer for James M. Dwyer, claimed $30 million was in place for the purchase of the South Shore resort, and said its acquisition, along with the former Belmont property, would be complete by the end of December.

He said discussions with Aetna last week gave no indication that the sale was off.

"We will be owners before the year end,'' he said. "We have the money, we have to resolve one issue before going ahead. We will then follow through with the concept of a condo hotel.'' Mr. McKeever could throw no light on Aetna comments to The Royal Gazette earlier this week, in which they said talks had been broken off with his company. He said Aetna was going through some major changes and they would simply go higher up the "chain of command'' to achieve the desired result.

But last night highly placed tourism sources on the Island indicated the deal was definitely off.

When asked why his company were pursuing a deal when the owners apparently did not want to cooperate, Mr. McKeever indicated that Aetna needed to sell what he said was the only hotel on their books.

"Sonesta is wonderful, it is head and shoulders above anything else for sale, you get three beaches -- it is perfect.'' And when questioned what effect his comments would have on the hotel's staff, he said: "The staff have had uncertainty for the last six or seven years.'' The chief financial officer said there was one matter to resolve with Aetna before the sale could be completed. However, he would not disclose what the issue was.

On the sale of the Belmont property, he said a contract of sale existed and they would also complete that deal by the end of 2000.

"We have a huge interest in Bermuda, we think tourism is going to roar back.

It is really at the lowest it could possibly be, we think it is a wonderful place to do business,'' he said.