HSBC's agreement to buy the Bank of Bermuda does not prevent others bidding for the Island's largest bank. The $1.3 billion cash deal for the Bank of Bermuda was announced on Tuesday.

But the sale must still get the approval of shareholders and regulators, and until the deal is closed the bank can still be considered up for sale, said chief operating officer Philip Butterfield.

Mr. Butterfield added that HSBC had been the only party to make an offer for the bank. But any other bids between now and when the sale closes - it is expected to be completed in the first quarter of 2004 - would not be turned away.

Mr. Butterfield told The Royal Gazette: "It is still possible that another suitor or party could identify themselves." He added, however, that it hadn't "happened so far".

If there were to be other suitors given serious consideration, Mr. Butterfield said it could cost the bank a healthy sum, were it to break its agreement with HSBC.

"There is a break-up fee of $30 million but it is conceivable that another institution could say we've had our eye on the Bank of Bermuda as well."

He added that if that happened "they would have to step forward with an offer and our board of directors would be obligated to give it consideration. We are talking about whether or not the combination of price and strategic fit is as compelling as that represented by HSBC."

If an offer was made, he said: "They would have to step forward with an offer and our board of directors would be obligated to give it consideration. We are talking about whether or not the combination of price and strategic fit is as compelling as that represented by HSBC."

When asked if that was possible, Mr. Butterfield concluded: "It is unlikely but one never knows. There are endless possibilities in that regard but rather than speculate I think we have to wait and see what evolves."