market cap and nav, page-2

in addition, the current nav/share is 56c($1.3b/2.5bil).

For BEPPA to convert now, and not cause dilution, would require a ratio of 1.78xBBI

...(1.25bil /700BEPPA)=1.78 ...($700m/1.25bil)=56c

What does this all mean? Well, if Beppa convert at 1.78xBBI at any point before 2012 the overall impact to BBI holders is 0. Make a spreadsheet and see
bbi=6c, beppa=10.7c (6c*1.78)
bbi=12c,beppa=21.4c...etc

im in the camp that believes beppa wont convert, or doesnt need to. But IF you are of the view that beppa MUST convert, then i would be thinking along those lines.

Anything under 1.8xBBI conversion=win for BBI

Anything over 1.8xBBI conversion=loss for BBI,though could be other benefits.

So clearly BBI know that is the magic number, and any conversion offer will be around that figure(perhaps 2x, a slight premium).

I would be pricing beppa accordingly at circa 1.78xBBI, if i thought conversion was likely. as you can see bbi@12, [email protected] is a distinct possiblity.