price slide, page-26

Firsova,

Thanks for the extra insight as I had not looked at it that way.

The $285 mill for PXU is shown as equity in the 2011 Annual Report. I'm not sure this is the right spot for it (should be a liability?) but if PXU treated as equity then what you propose changes nothing on the assets/liabilities equaution.

It does however remove the rights of the PXUs from the equation.

On this basis you may or may not see a rise in SP but if PPX doesn't turn its profit around I expect not.

On this basis PXU's would have given up their rights for nothing. Further, I expect most PXU holders do not want equity in PPX, as PXU is a different type of investment.

Expect most PXU holders would therefore accept a reasonable cash payout but not a conversion. But if "forced" to convert, them would want at face value of $100 which effectively wipes out existing PPX holders.

I hold PXU only