Alan, seems like a low risk trade to me as even if Elders don't...

Alan, seems like a low risk trade to me as even if Elders don't make a bid one would have to think that Fonterra will get to 50% of Bonlac thereby improving Bonlac's profitablility and therefore their debt servicing abiliity which will push the notes up.

If Elders don't make a bid the notes could actually trade above $100 down the track if Fonterra get to 50% of Bonlac as the credit rating of the notes should get back to investment grade which would push their price above $100 due to their high yield.

In the meantime I am happy with a yield of above 11%.

Good luck with your position.