Realtors were trying to assess where this will position them in the market.

Chairman of the real estate division of the Chamber of Commerce, Mr. Thomas Moss, of Thomas Moss real estate, said that he would consult with his industry partners about the move.

He said: "I can't really make any comment, except to say that initially I'm not happy with it. But I need to talk to the people involved to find out just what this all means.'' Mr. Moss was not the only realtor who was caught off guard by the unveiling of one of the best-kept secrets in the business world.

Cabinet Minister and realtor, the Hon. Leonard Gibbons, admitted: "It was an absolute shock.'' Like the rest of the real estate industry, Mr. Gibbons is eager to discuss the matter further with his industry colleagues.

"I have to look at it all very seriously as to how it will affect my business and me personally,'' he said.

"What we've created now is two of the largest deposit companies having a real estate company. And the banks, who deal with overseas clients, will be steering them to the real estate companies they have a shareholding in. I do hope the industry will get together to discuss this.'' Mr. Arthur Jones of Jones Waddington said the matter must be approached from the public's point of view, and what is in the best interest of the consumer.

"What's in the best interest of the consumer is for real estate agents, who represent the seller, to be independent and separate from the mortgage lenders, whose interest it is to lend money on a secure basis. When you amalgamate the two, you have a terrible conflict of interest. "Mortgage companies are engaged to lend the appropriate amount of money they see fit on a particular property. If they don't agree with the price, then they don't lend the money. The lenders are protecting the purchaser by not lending him more money than he can afford. They are also protecting the depositors' money.

" They in affect are working against the vendor, in that the realtor is trying to get a seller the best possible price.

"But one company is now on both sides of the transaction, and that is a conflict of interest.'' Still, Mr. Anthony Goodfellow, a director of First Properties of Bermuda Ltd., agreed with his colleagues that there was not a whole lot to say at this time.

But he did indicate there were "certain aspects of this that indicate that it might not be quite what it seems''.

Bank of Butterfield chairman Sir David Gibbons said of the two businesses being merged: "They would be in a stronger position,although one regrets the passage of an independent operator.'' Sir David said that he was yet to meet with officials of his bank and discuss the matter.

Mr. James Gibbons, manager of the deposit taking company, Gibbons Company, said: "I'm sorry to see one of the few remaining independents go. Hopefully, they're intending to create a good financial services company. All it means is less choice to the consumer, for sure. Before, you had separate companies.

"Any other comment at this time would only be speculation because it remains to be seen what they will do.''