Bank of Bermuda CEO Henry Smith last week said HSBC initially came to the table with an offer $11 lower than the final sales price of $45 per share.

The deal, which is for a total of $1.3 billion, will see HSBC buy out 100 percent of the bank, including its 17 global operations. The sale is expected to close during the first quarter of 2004, but must still be approved by regulators and shareholders.

Mr. Smith made his comments on HSBC's initial price offer during a meeting for Warwick branch members of the PLP, at which he and chief operations officer Phillip Butterfield addressed a group of up to 100 people. The meeting, which was held on Thursday night at the Warwick Workman's Club, included Premier Alex Scott, Transport Minister Ewart Brown and Youth and Sports Minister Dale Butler.

Mr. Smith was speaking to the $45 payout per share to shareholders ? which is made up of a $40 payment from HSBC, and a $5 special dividend from the Bank of Bermuda ? which has caused some concern from several shareholders. Those investors said the $150 million in extra capital that is going to pay the $5 special dividend already belonged to shareholders, and should have been paid out above, not as part of, the sales price. But Mr. Smith, at the meeting, pointed out that shareholders would only be "confused" if they looked at what was coming from where, rather than the big picture, which was the $45 they would receive for each share they held.

"In terms of the price, there is only one thing you need to know... it is $45 per share," he said, adding that the $45 price was "$11 higher than where discussions with HSBC began."

In an interview with earlier this month, Mr. Smith said there had been price negotiations with HSBC in coming to the final price, but did not divulge further details.

"No one will pay more than they think they have to. We got into pretty heavy price negotiations. We did not start at $45, we worked our way up.

"We did have to negotiate; they were tough, and they do not like paying $45 I can tell you."

On Friday, a bank spokesperson could not confirm Mr. Smith's comments on the initial price offered being $11 lower, or if that $11 was off the $40 per share HSBC is paying to shareholders, or off the total $45 payment to the bank's investors.