re: Ann: PaperlinX's response to RE annou... They are playing...

re: Ann: PaperlinX's response to RE annou... They are playing the correct stratergy and not deviating. It may be rhetoric, but it needs to be said. Their first priority is keeping their jobs, but by protecting their jobs they are also protecting PPX shareholders.

Make no mistake, if this ammendment is passed and assuming their was no legal challenge, then their would be no compromise. Once you make that alteration, another meeting will promptly be called. They will request full conversion and likely get the required 75%, because lets be honest who will vote against getting back the full $100? And that is disastrous for management and disastrous for PPX shareholders.

In reality, they will not go down without a fight. And they stand an excellent chance of winning. If they can convince people to block the vote of PXUPA holders, then they will not need to use their get out clause and as a result it cant be challenged in court. That would be the ideal PPX out come.

If they cant achieve that, then they will block it. It then heads to the courts most likely. Although, strategically for both parties, this moment would be ideal for compromise. Both parties wanting to avoid legal costs, time, bad publicity, etc. And both parties having a hand to play.

The cross ownership is the big unknown. Many people hold both stocks. What is good for PXUPA isn't necisarily good for PPX unless their is some compromise. Even $50 would benefit both sides. I would say most people would benefit more by full conversion of PXUPA and writing off their PPX holdings.

Large PXUPA holder should be trying to gain some voting PPX shares. As any large conversion will require PPX shareholers approval. Anything above 15% which is a trivial amount.

I still think Coastal might convert some just to get a vote. And then start buying PXUPA again since they have almost reached their limit.

I do think the current offer is unreasonable. But Im not fazed by it as it is totally optional on our part. And although it looks like gaining minimal acceptance and therefor not addressing the problem, I am happy for it to be addressed at a later date. Anything they achieve with this offer is just a cheap bonus.