price slide, page-92

Thanks Kiril,

Understand we are a long way apart on our views but:

1 Hybrids continue to be issued by others today ie not at "junk bond" status

2 I will certainly be holding my PXU for as many years as it takes.

Reasons for 2 above are:

a) IF PPX continues as it is then will be taken over or in administration. Either way I'll get a good return. NOTE: PPX holders will get $0 in administration

b)If PPX recovers, then presume they will want to pay a dividend at some time to PPX holders. If so, then PPX have to pay me at least 2 distributions, potentially at the stepped up rate of BBSW + 4.75%.....a very nice return on current PXU prices.

So either way, I'm in it for the long haul and expect many other PXU holders have the same view.

But rather than waiting I would be prepared to consider a reasonable offer to exit earlier.

In consdiering the PPX position, surely paying dividends would have a positive impact on PPX SP!

Considering all the above, the upside I see for PPX holders is that it can remove the potential interest payments it would need to make to PXU holders to allow dividend payment to PPX. PPX can also remove some PXUs at well below face value.

I think there is potential for a win all round provided both PPX and PXU show some flexibility.