up property near its Serpentine Road plant.

It appeared to be in position to take possession this month of the nearby Serpentine Motors property. President and CEO Mr. Garry Madeiros, reported a week ago in a quarterly notice to shareholders that an agreement was in place for the property's purchase.

But when asked about this yesterday, the property's owner, Dr. Henry J.B.

Manderson, said: "Well, at this point, let's say negotiations are going on.

That's the stage of the game. Negotiations are ongoing. It would be premature for me to say anything.'' In the notice to shareholders, dated June 30, Belco states:"To improve Belco's facilities and in support of our plans for business expansion, we have recently entered into an agreement to purchase Serpentine Motors property.

"The company will take possession of the property in July and begin renovating a portion of the building for a purpose built facility for our transmission and distribution operating sections.'' Dr. Manderson responded: "All I can say is that final things have not been signed by either or both parties.'' He did confirm that negotiations had been going on for several months.

Belco has already announced a planned reorganisation, involving moving the assets of the group under the umbrella of a new holding company, Belco Holdings Ltd. It has called a special general meeting to discuss the plan for July 19.

The quarterly letter states: "This reorganisation will better position the Belco Group to meet the challenges of the future, including increasing the types of services we provide. The purchase of Bermuda Gas & Utility Company Ltd. was a first step in expanding our energy services.'' "Given changes in the industry and movement towards a competitive marketplace we need a more flexible corporate structure to take advantage of new business opportunities.'' The Bermuda Gas acquisition meant that a piece of property adjacent to the sprawling BELCO complex was consumed by the power company. The Serpentine Motors property is the next property along on the route into the City.

Mr. Madeiros, who is currently off the Island, also said that there will be other changes for existing plant.

He said: "The electrical section of our generation department is moving into a newly renovated building on our plant site. This first phase of the new generation department is moving into a newly renovated building on our plant site.

"This first phase of the new generation facility includes and instrumentation workshop and offices for foremen, supervisors and shift charge engineers.