chim chimney chim chimney....., page-9

Assuming no corporate debt in 2012, and no cash - so facing 100% conversion of BEPPA to BBI ordinaries, then the following equation should hold

NTA / total shares after conversion = share price just before conversion

(because, assuming NTA is known roughly, everyone can do this calculation, so shares should trade at what they will be worth after conversion)

And "total shares after conversion" = $800 million / share price just before conversion + 2 billion

Which has two solutions:
1) SP = (NTA - $800 M) / 2000 M
2) SP -> 0

But if the NTA is clearly much bigger than $800 million at this point, I don't think the second solution is stable - someone can buy shares and then keep buying just to push the conversion ratio up.

Conclusion: if the NTA is _clearly_ bigger than $800 million or whatever the total BEPPA liability is in 2012, then there will be no death plunge.

But I really think this is just irrelevant at this point: 2012 is a long way off

[holding BEPPA]