deadfish>The SP can drop substantially on conversion as many PXU...

deadfish

>The SP can drop substantially on conversion as many PXU holders won't want to own PPX.

In the short term that could happen. The opposite could also happen if those wanting a cheap way into PPX buy PXUPAs on market and convert. In the long run the more PXUPAs swapped the lower the long term liability for PPX and the easier to sort out the remaining hybrids down the track.

On the other hand seems unlikely that the bid will reach a compulsory point so it will not simplify PPXs capital structure or allow a capital raising. If they get say a 30% take up it might benefit remaining PXUPA holders as well as PPX holders.

Would I swap my PXUPAs? Not so sure.

The fact they are doing this suggests the Board are optimistic about the future and do not see a need for an imminent CR.