whether a controversial bid to develop the Bermudiana Hotel site by two foreign firms should go ahead.

Exempt company insurance giants ACE and Exel want to buy the prime site from owners Argus -- but the proposal would breach the strict 60:40 rules governing foreign ownership of Bermuda companies.

Committee chairman, PLP MP Stanley Lowe, was Tuesday tight-lipped over the deliberations.

He said: "The committee has the matter under consideration -- I can't say more than that.

"We hope to meet again to consider it further before the House closes down for the Christmas break.'' The Bermuda Financial Centre Ltd was apparently squeezed out of developing the Pitts Bay Road site when ACE and Exel announced they wanted to build offices.

And to avoid problems under the rules forbidding foreigners from owning more than 40 percent of a Bermuda company, the two insurance firms introduced the Bermudiana Site Rehabilitation Act 1996 as a private members bill.

The Bermudiana site was taken over by Argus Insurance, through Winson Holdings, after BFCL was unable to service loans.

And in October, ACE and Exel agreed to buy out Winson Holdings from Argus Insurance.

The move prompted a blast from directors of BFCL, who claimed turning over Bermudian development to 100 percent owned foreign firms was a dangerous precedent.