companies, the world's biggest rum producer.

Nearly 100 shareholders of Bacardi's four companies will meet in Bermuda this Friday to ratify a major reorganisation plan.

It will lead to the setting up in Bermuda of a holding company, Bacardi, to manage the group's $3 billion of assets.

The holding company will wholly-own Bacardi and Company, of the Bahamas, Bacardi International, of Bermuda, Bacardi Corporation, of Puerto Rico, and Bacardi Imports, of Miami.

The group's other operation, its Mexican distillery Bacardi y Compania will be brought in later this year.

Previously, the companies had existed as separate entities.

The changes are expected to save Bacardi about $15 million a year in administrative costs.

Despite the reorganisation, the firm said there would be few new jobs in Bermuda, where Bacardi International already employs 48 people.

Bacardi International holds the manufacturing and distribution rights for Bacardi products for most international markets outside the United States.

Mr. Manuel Cutillas, who is expected to head the new holding company, said the time had come to get rid of the current structure of having several independent companies.

"It has served us well in the past but the growing competitiveness of the global marketplace demands the efficiencies and co-ordination that only a consolidated structure can provide,'' he said.

"The individual operations of the four companies are currently highly successful and will continue under their existing managements and policies.

"The holding company structure will strengthen the group by helping to co-ordinate worldwide production and marketing strategy and by combining the financial resources of the group for more efficient deployment.'' His brother Mr. Eduardo Cutillas, who heads Bacardi International, in Hamilton, said the changes would not have a significant impact on Bermuda.

"A lot has still to be determined and we will be discussing everything on Friday,'' he said. "We will not have a lot more people here.'' He said that Bermuda was considered to be "legally the best vehicle for the reorganisation''.

All the senior executives of the Bacardi group will be in Bermuda this week to thrash out the final details of the changes. Also taking place on Friday is the final shareholders' meeting of Bacardi International.

Bacardi has also announced that a damaging five-year dispute between family shareholders over whether the company should remain public or go back to being private had been settled.

As a result of the settlement, the Bacardi corporation has become a private company by order of the US Securities and Exchange Commission and all litigation is being dismissed.

Mr. Manuel Cutillas said: "With our new consolidated structure and the reunification of our shareholder body, the Bacardi enterprise will be poised to face the future with confidence and optimism.'' The Bacardi group originated in Cuba, but was run out of the country by Fidel Castro in the 1960s. Its rums are sold in over 150 countries.