education system. That was one of a list of findings which the local chapter of Phi Delta Kappa will forward by next month to the Education Ministry to help take the public school system into the 21st century. ---- Page 2 NEW HOUSING FOR SENIORS SOUGHT HSG SR New housing for seniors sought A United Bermuda Party approved candidate yesterday called for the old wing of the King Edward VII Memorial Hospital to be turned into sheltered housing for senior citizens. ---- Page 3 CARTER HOUSE TO BE MUSEUM HOA MUS Carter House to be museum Plans are underway to turn one of Bermuda's treasured historic houses into a museum. After renovation work is complete, it is hoped that the 18th century Carter House -- which is thought to be one of the Island's oldest stone houses -- will become an important landmark. ---- Page 4 EXEL, MID OCEAN IN MERGER BUC Exel, Mid Ocean in merger Exel Ltd.'s buying spree came to a head yesterday when the company announced a takeover of Mid Ocean Ltd. for $2.1 billion in stock. The joining of the two Bermuda-based reinsurers will create a powerhouse with $8 billion in market capital, making it one of the 20 largest US-listed property-casualty insurance companies. ----Business, Page 9 EXEL REPORTS RISE IN NET INCOME BUC Exel reports rise in net income Bermuda insurer, Exel Ltd., has reported a 43.8 percent increase in first quarter net income to February 28 at $155.4 million or $1.81 per share.

----Business, Page 11 VASCO `VICTORY' NOW OFFICIAL SOC Vasco `victory' now official Officials of Bermuda Football Association emerged from an emergency meeting yesterday to announce that Vasco's 2-0 lead in Sunday's abandoned FA Cup semi-final match would stand as the result. ---- Sport, Page 17