Telecommunications Minister Renee Webb may try to block a bid by Atlantic Tele-Network to buy up to 100 percent of cellular phone company Bermuda Digital Communications.

But any attempt to thwart the deal would probably fail since BDC already has a licence exempting it from the 60/40 foreign ownership rule.

If the takeover goes ahead, it would flout the Telecommunications Ministry's policy of only supporting licences for up to 60 percent ownership by non-Bermudians for any class B carriers.

BDC is the parent company of Bermuda's second largest cellular service company, Cellular One.

According to Greg Swan, director of Telecommunications at the Ministry of Telecommunications & E-Commerce, BTC Mobility is the largest Class B carrier, followed closely by Cellular One with Telecom Bermuda in third place according to numbers of subscribers.

"Class B" is a Telecommunication Act designation which refers to local wireless telephone service providers, as opposed to international service providers.

Atlantic Tele-Network (ATN) currently owns 43 percent of the capital stock of BDC and is seeking to purchase the remaining shares held by private shareholders.

BDC Principal, Michael Leverock, confirmed: "ATN are interested in buying as much as possible" but was unable to provide further details due to a confidentiality agreement. Asked when the deal was likely to be completed, he said that timing would depend on the Ministry of Telecommunications and E-Commerce.

The Registrar of Companies has confirmed that BDC is in possession of a valid 114b licence which grants it an exemption from the 60/40 rule. Such licences are granted by the Ministry of Finance, but in the case of telecommunications companies, the Ministry of Finance will consult the Telecommunications Ministry before granting the approval.

Mr. Swan said that the Ministry's current policy was to only support licences for up to 60 percent ownership by non-Bermudians for any class B carriers.

He implied that Government might object to a 100 percent purchase, saying: "The final decision resides with the Minister."

However, since BDC have already been granted a 114b licence, and the proposed buyer, ATN, is already a shareholder and therefore not subject to Bermuda Monetary Authority approvals, it seems that this might be a case of trying to bolt the stable door after the horse has bolted.