which 10 days?

I refer to the announcement on Wednesday (reproduced at bottom).

I am a little confused as to what is going on here and if someone could explain in simple language what this announcement is actually saying that would be great.

From what I can see is that the credit for the Perls II securities (PCB - non trading Trust) which was always a liability to CBA. There appears to be an effective "equity swap" to Merrilll's for PERLS II for CBA stock to occur on the 16th March 2009. The PERLS II securities will extinguish at that time.

The way that the equity swap will occur is that prior to 16th March, to assist CBA in capitalising its balance sheet CBA will allow Merrills to buy CBA stock prior to end of January 2009.

The buy price at which CBA will allow Merrill's to buy the stock is a 10 day trading period... but which 10 days are they referring to?

Then CBA will exstinguish the PERLS II and pay Merrill's with like for like cash on 16th March.

Is this right?

The announcement on Wednesday noted:

Commonwealth Bank of Australia Ltd (ASX:CBA) has entered into a placement agreement with Merrill Lynch International (Australia) Ltd.

Under the agreement, the Bank will issue shares to Merrill Lynch to raise up to $750 million of new capital. The proceeds are intended to be used to redeem the PERLS II securities in March 2009.

Under the terms of the PERLS II securities they may be redeemed for cash on the Rollover Date of March 16, 2009. Reset terms will not be offered under the PERLS II securities.

The number and price of new shares issued under the placement will be calculated based on daily volume weighted average prices of CBA shares over a period of up to 10 trading days.

The new shares will be issued before the end of January 2009.

The Bank will retain the ability to adjust the size of the
placement or to reduce the pricing period depending on market conditions.

Following feedback from shareholders, CBA has announced a share purchase plan will be offered to all shareholders.

Final details of the plan will be provided at the Bank's interim results announcement in February.