My thinking:- ELD spp 15 cents safe is buying- market may...

My thinking:
- ELD spp 15 cents safe is buying
- market may converge towards 15 cents as instos, spp uptakers (shorting) and spp holders take profits, but maybe not get all the way to spp price
- counterbalancing this current weakness is increased risk of takeover as ELD becomes very attractively priced

ELDPA not being discussed but to me, a good buy:
- dividends suspended until 2010??? then in June 2011 steps up to 4.7% over bank bills; say 9.7% per annum yield
- capital gain 76% upon redemption
- ELDPA holders participate 50% in any takeover premium (good kicker, see below)


7.2 Adjustments for takeover or scheme of arrangement If a Hybrid is Converted pursuant to:
(a) an Issuer Realisation Notice given in respect of an Acquisition Event; or
(b) a Holder Request given in respect of a Trigger Event under clause 5.1(b) or clause 5.1(c), (each a Relevant Event), then the denominator in the formula in clause 7.1 for the Hybrid is equal to the lesser of:
(i) 97.5% of the offer price under the takeover bid or the consideration under the scheme of arrangement the subject of the Relevant Event; and
(ii) the VWAP (expressed as a dollar value) calculated in respect of the period of 20 Business Days on which trading in Ordinary Shares took place immediately preceding (but excluding) the announcement of the takeover bid or the scheme of arrangement the subject of the Relevant Event, plus 50% of the amount calculated by subtracting that VWAP from the offer price under the takeover bid or the consideration under the scheme of arrangement the subject of the Relevant Event.
In the case of non-cash consideration, the calculations under this clause 7.2 will be performed using the value of the offer price or the consideration as reasonably determined by the Issuer. The Issuer may rely on the advice of an investment bank, accounting firm or other professional financial adviser in this regard.