the potential sale of the Sonesta hotel.

The Bermuda Industrial Union president said he was disturbed over the "on-off'' nature of the deal which disintegrated last week with Sonesta owners Aetna Insurance saying they had stopped negotiations.

He said he was concerned over the vocal outburst by suitors James M. Dwyer chief financial officer Mike McKeever, who vehemently vowed that his company would own the hotel by the end of the year.

Yesterday, Mr. Burgess said he was disturbed by what he had read, adding that Bermuda should be very careful in its dealings with the New Jersey property developers.

"I am disturbed by it and I am sure the staff have to be disturbed by it. We have a good working relationship with Sonesta and hope that would continue if these individuals were the new owners. But it looks like they are starting off on the wrong foot,'' he said.

Mr. Burgess said the whole nature of the protracted sale, which has dragged on since the beginning of the year, had created uncertainty for the staff, the hotel itself and potential guests.

He said it was leaving the whole place in limbo whilst Bermuda tourism was trying to re-establish itself with a host of hotel renovations.

"It can't be pleasant for the staff, not knowing who the owners are going to be.

"It doesn't help the future of the hotel, if it is going to be sold the present owners are not going to put any money into upgrading. It puts everybody on hold.'' Last week, Aetna Insurance said they had broken off talks with James M. Dwyer Real Estate and Investment. It is understood constant delays in completing the deal had had an impact on the decision.

But a few days later, Mr. McKeever claimed the money for the property had been in place for some time and that the transaction would be finalised by the end of the year.

He also said the company was going ahead with the purchase of the closed Belmont hotel site, also to be completed by the end of 2000.

Mr. Burgess urged caution in any possible sales, he said: "Something is not right, it doesn't smell right. This was something that was supposed to be sold by March, we kept hearing "next month'' and finally it would be done by September.

"We have got to be very cautious now about Sonesta and Belmont. Bermuda must be very cautious about this.'' UNIONS UNS