||NON VOTING DFD SHS
||EPS - Basic
||Market Cap (m)
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|morks: Just wanted to bring everyone's attention to the ITV convertible shares - ITVC. They are infact more like options then Convertibles, and they work as follows:
If ITV ord shares close at or above 140p for 60 out of the last 90 days of the year, and the eps of ITV is above 6.26p in September, then these ITVC shares, convert on a 1 for 1 basis in to ord shares of ITV.
(For all the official wording see pages 8-10 on http://www.itvplc.com/itv/storage/ITV_articles_assoc2.pdf ).
The Eps is already above that, and the share price is only 11 or 12 p away, so the fact that you can buy these shares for about 60p is something well worth thinking about. If the company gets bid for, you get converted straight away, so if for example you bought some ITVC for 60p, and next week someone bid 145p for ITV , then your ITVC would be worth 145p too, an increase of 140%, as oposed to an increase (bid premium) of only 13% if you had bought ord shares.
The catch? - of course there is one... if the price/ eps doesn't make the targets (140p, 6.26%), the ITVC expire on 1/1/06 worthless, therefore I would say they are not for widows and orphans, only for the brave!
Obviously it goes without saying, I am not recommending anyone to buy these, just bringing them to your attention, as they are a remarkable instrument, which could make you very happy if you got it right! do your own research etc...|
ITV share price data is direct from the London Stock Exchange