letter from ceo, page-3

As you know by now, I am long TIMPB and hope TIM survives. But what I still cannot understand is why TIMPB is SO cheap relative to TIM.

TIMPB converts to TIM at ratio 4:1 under Sp 50 cents in Sep09 PLUs you get 13.5 cents fully franked dividend. So at TIM=12 cents, TIMPB=61.5 cents and that does not take into acccount the slight advantage in TIMPB ranking ahead of TIM equity. Only explanations I can think of are (a) TIM is for punters and TIMPB is not on radar screen (b) Maybe people who own TIMPB don't think company will be around in Sep09.

Any views PP?