"If they vote down the conversion, even with a gun to their head, hypothetically they are no worse off. So, management in all their wisdom,have to keep the SParcs/Beppa's etc interested. Otherwise they don't care."
This is it in a nutshell. The CI has to allow enough to encourage the hybrids to convert and therefore cannot screw them too much into nothing. It will be a delicate balance though.
What may help some of the larger BEPPA holders is the fact that if they get converted to BBI ords and have access to the rights issue and assuming they have the cash to take up the new shares coming out at a discount, then voting for it to happen may lead them to a windfall from the rights issue.
I think they will have the BEPPA numbers to vote it in if something decent is offered.
The sticking point is going to be getting the SPARCS holders to agree to it as well, especially as some of the larger NZ SPARCS holders are probably not too interested in participating in the rights issue.
BBI Price at posting:
4.4¢ Sentiment: None Disclosure: Held
