when bosses of three international firms signed a deal paving the way for its demolition.

CEOs of ACE Ltd and EXEL Ltd signed an agreement with Argus Insurance that finally sold them the property.

The deal could also kill an eleventh-hour rival bid by Englishman Peter Clayton who had promised to fight the insurance companies' plans to build offices on the site.

He had pledged to appeal any planning permission -- but last night he admitted the sale of the property could alter his plans.

"I am surprised that ACE and EXEL have exercised their option to buy the property and we will now review the situation in the light of that,'' said Mr.

Clayton last night.

Late yesterday evening ACE chairman Brian Duperreault, EXEL president Brian O'Hara and Argus CEO John Sainsbury signed documents sealing an $18 million buy-out of the Bermudiana Hotel.

The signing ended an agreement first made about 12 months ago which depended on two factors -- passage of the Bermudiana Bill allowing foreign ownership and planning permission which was given yesterday.

ACE and EXEL want to build offices on the site and it is likely the hotel will be demolished by the end of this summer and offices built over the next five years.

In a joint statement Mr. Duperreault and Mr. O'Hara said: "We are pleased to have received planning approval and to be able to conclude the purchase of the Bermudiana site from Argus.

"It is our intention now, as promised, to proceed with securing the property and demolishing the derelict hotel as soon as possible.

"EXEL intends to commence building on the eastern portion of the property within the next 12 months and ACE will subsequently develop the western half of the site.

"We believe this project is in the best interests of Bermuda and look forward to proceeding with it.'' Mr. Duperreault, Mr. O'Hara and Mr. Sainsbury declined to comment on Mr.

Clayton's plans or objections to their scheme.

However they said as far as they were concerned their agreement was a "done deal'' and no further obstacles stood in their way.

Late last month Mr. Clayton, chairman of London-based Financial Placements, bought the Bermuda Financial Centre Ltd and relaunched its bid to develop the site with offices, shops and a hotel.

He promised to appeal if ACE and EXEL won planning permission and if necessary seek a court injunction to stop building going ahead.

However the picture has altered now that the two insurance companies have bought the site, as Mr. Clayton would have to deal directly with ACE and EXEL as the owners.

Both companies have already indicated that they are not interested in the BFCL plan and do not want to take part in building a hotel, shops and restaurants.

"I will take advice from my lawyers on the situation,'' said Mr. Clayton.

"We will review the situation, but ACE and EXEL's plans would be a shame for Bermuda and Hamilton.''