'the vote in Jan will be for the hybrid to be issued with conditions attached to the hybrid conversion. one of those will be shareholder's approval in 7 years time.'
If that's the deal then lets call it a long-term loan.
I mean under what possible condition would shareholders vote to substantally dilute their holdings in 7 years time? And under what possible condition would the banks agree to allowing their arrangement to be dicated by shareholders in 7 years time? Just remember the banls have the upper hand. This deal could only have been enforced on CNP by the bank lenders with secured parts of the current loan. CNP needs to satisfy every bank lender, not the other way around.
I'm afraid the announcement is not clear at all and has misled some into believing that what you say is correct. I'd suggest those who still cannot understand why a vote in 7 years time is impossible should give the company a call and ask them to confirm for you.
Remember as well there has been no signed agreement on this. It is purely by CNPs own words, what CNP believe to be the current situation.
CNP Price at posting:
8.0¢ Sentiment: None Disclosure: Not Held
