tim/timpb, page-3

interesting questions
- I do not follow TIMG but I think the max conversion is better than TIMPB
- short selling is available on TIM but I guess you have to shop around with CFD providers as it is a day-to-day proposition (e.g. whether they can borrow the stock or, if a market maker, whether they have appetite to buy from you);
- max conversion ratio for TIMPB is 4:1 (i.e 50 cents) and that is taken into account in calculations.
- There is a risk that TIM will NOT be available for shorting during VWAP period in Sep09 and that is the main reason shorting NOW is an advantage. (Using CFD's during VWAP pricing for all hybrids might of course be worth considering); But on TIMPB/TIM, using 3.5/1 hedge ratio and 4/1 max conversion, you are short 3.5 TIM versus receiving 4 TIM on TIMPB conversion (assuming TIM less than 50 cents in Sep09) so pretty well hedged. Once you get your stock from TIM, you sell the physical and buyback short CFD at same time. (worst case TIM will be "long only" trade on CFD at that time)
- Your last question I suggest is just humour

My way of thinking is that if we actually get to Sep09 and company still exists, that will be very good news for note holders. With max conversion at 50 cents and constant at this level at share price less than 50 cents, this seems to be the max payout point.