reggie,what I mean is the conversion of the hybrids is not...

reggie,

what I mean is the conversion of the hybrids is not really the issue that causes the dilution.

Bringing the hybrids into existance is what leads to the dilution since you then must assume they will be converted.

My other point is this:

Let's say the banks own 15% of CNP and the rest of us own 85%. Let's also assume that this conversion business happens by vote in 7 years time for a piddly 1 bill of debt.

Come voting time would you as part of the 85% shareholder vote in favour of it? No way, you would vote against it so you don't get diluted with billions of shares at 13 cents.

The only votes in favour would be the 15% holders. This is why I think buffett is correct. Why would the banking groups open themselves up this way when it's all buit resolved to save Centro and give them all the upside?