aazpb, page-34

Until today's announcement, there were doubts about ALZ's ability to refinance. This uncertainty has now been removed, covenants have been softened and operating profit has been confirmed.

Whilst ALZ is up 20%, AAZPB is only up 5%. This makes no sense to me!

At 47, AAZPB provides 58% PER ANNUM return to an assumed exchange date of July 2011. In doing this calculation, I have assumed a 10% haircut on sale of equity.

I think this return will be better than ALZ itself and more secure given AAZPB ranks ahead of ALZ in both dividend and wind up. If exchange is later than assumed above, return will drop off but it will be a year-on-year return. Worst case and unlikely at that is "perpetual" which gives 21% per annum year in year out.