Firsova
>Unfortunately for PXUPA holders the board of PPX first responsibility is not to PXUPA , but the business of PPX and its shareholders .
Yes, it is important that we all remember this.
>If the offer of fair value is not accepted I suspect PPX directors will get back to running their business and ignore hybrid holders again just as Mr Boon did , and over time repair the PPX business and then come back to hybrid holders when the stock is say 40c , and offer 50-70 PPX for each hybrid.
What is fair is in the eye of the beholder. Just as I would be unlikely to accept a price for my PPX shares a bit over the current SP if there was an offer, I would be unlikely to accept a swap based on current SP multiples.
>Where as now if an offer of 100-200 was accepted hybrid holders could get the upside lift of a repaired balance sheet and end up with 50% of the company compared to the 10% odd level they were representative of at the time they were issued
I have trouble accepting this argument. The balance sheet will not be repaired unless new cash is injected to pay down bank debt etc. While a swap potentially makes it easier to do a subsequent CR, I would be much happier if all the cards were put on the table at the same time. Also if PPX is in a dire capital constrained situation as PIGS is suggesting a swap will not fix that. If it is not and Andrew and the team can fix it over time why not wait a bit, get a clearer idea of the recovery path and then do a swap when both PPX and PXUPA SPs have recovered a bit.
The are also early signs the Euro zone economies are starting to recover. This may make it easier for PPX.
I hold both PPX and PXUPA. I bought them both fairly recently but at higher than current SPs. I am not expecting to get $100 for my PXUPAS or to achieve a similar multiple for my PPX but neither am I anxious to get out of either by rushing into a swap deal and selling out to an opportunistic buyer who might turn up soon after a swap is arranged.
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