Government today hit back over claims it offered the Bermuda Cement Company a figure below the asking price in order to temporarily nationalise the bulk supply operation and prevent a construction industry crisis.

According to West End Development Corporation lawyer Wendell Hollis, a $250,000 offer made to the company on Tuesday was based on a proposal originally put forward by the BCC for the plant and equipment.

In addition, said Mr. Hollis, Government would also purchase the cement left in the silos upon the expiration of the BCC's lease.

However, he claimed the BCC rejected the offer on Wednesday afternoon.

The BCC has refuted this allegation. Its lawyer Alan Dunch said today the offer is still being considered, but the company wishes to find a buyer for the whole enterprise as a going concern – tangible assets, equipment and supplies – or to get the best price for the equipment.

"The board has determined that its primary obligation is to maximise value for its shareholders and therefore that it is not in a position to fully consider and make a decision upon either the Government's or any other offer for either its assets or for the shares of BCC which might be received in response to the advertisements in question," he said.

This newspaper reported comments yesterday from company boss Jim Butterfield that a realistic asking price for the company is around $1 million, depending on whether a new buyer can secure an extended lease for the current site.

He said he had been approached by four other parties who asked about buying its shares and "seeing if they can get some relief on the lease". Meanwhile advertisements for further interested parties have run in the press.

Mr. Butterfield said he views a Government sale unfavourably and warned there will be no cooperation if a hostile take-over is attempted.

Wrangling between the company and Wedco has left the Island on the brink of a cement supply crisis, prompting the intervention of Government.

Minister of Works and Engineering Dennis Lister held a joint media conference with Wedco representatives this morning to defend their handling of the issue - pointing the finger at the BCC for reneging on previous agreements.

The parties issued a chronology that Mr. Hollis described as the "clear unadulterated facts on what's happened - no spin."

The document, which includes the disputed allegation that BCC rejected Government's offer, is available in full on www.theroyalgazette.com.

Mr. Lister said: "We still stand on behalf of Government and Wedco still as honest brokers in this situation. We are still looking to bring a positive resolution in regard to continuing cement at that site. The BCC is no longer interested in a lease at that site so Government has stepped forward to continue to ensure that cement is available and that's the offer that we stand by and we're prepared to continue that."

The BCC and Wedco have blamed each other for the circumstances leading to the fact that after 43 years at its Dockyard location, Wedco will no longer have a lease to operate there as of December 31.

At the press conference today, Mr. Hollis said it was not the case that Wedco terminated BCC's lease, claiming the quango has acted in good faith during protracted negotiations.

See tomorrow's Royal Gazette for more coverage