re: Ann: Market Update in relation to Paperli... Firsova, I'm happy for PPX holders to retain 100%. I'd prefer cash as I have never sought long term equity in PPX - but I have enjoyed a few PPX trades along the way.
The problem is how can the major PXUPA holders eg Coastal (15%?) and PIGs (>> 25% I expect) be satisfied as either can scuttle a PXUPA vote which (if I recall correctly) needs > 75% approval.
Pure speculation, but the initial offer may be $20 plus 200 PPX accompanied by compelling reasons to accept, including it is better than the "offer" received in December 2011 etc
While this would keep existing PPX at > 50% it would get rejected by PXUPA.
Would have thought PXUPAs may want $60 + 200 PPX ie somewhere near Rick.Wlls.99's $71.
So the middle ground might be $40 + 200 PPX but acceptance will depend entirely on Coastal and PIGs.
Where the $40 (~ $115 million)for PXUPAs will come from is a question for the Board, as they would not only be improving the balance sheet by a net $170 million, but also ridding PPX of the PXUPA restrictions to potential development.
Time for them to get the thinking cap on and sleeves rolled up. Not sure if Moelis & Company are still around to assist?
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