rennis: First of all, TIM has the option to give you the cash...

rennis: First of all, TIM has the option to give you the cash back (at $2.00 per note) in Sep09 or, more likely, give you $2.05 value per note towards buying shares at VAWP price over last 20 business days prior 30 Sep 09. So lets say VAWP price average is $1.05, you get ($2.05/$1.05) times number of notes you hold. Maximum ratio is 4 TIM per TIMPB and minimum ratio is .9091. So in effect TIMPB holders will end up with TIM shares and there is a risk they will dump the TIM as they hit their share accounts in early Oct. I suggest this risk can be hedged by using CFD's but the hedge is not perfect. I own TIMPB but am short some TIM as a hedge.