Michael, as the author of that "crazy speculation", I am not sure the convertible holders really want conversion, they want the price to be at or above their conversion price so that they can lay out their hedges and take their money off the table. I doubt they actually want to hold the stock for any length of time. (g). MU, of course wants to see the conversion go through, and the question is who will win, MU (getting the price above 87 for 20 out of 30 days) or the bag holders, which I believe will short furiously (or sell leaps) between $70 and $80, I think the latter will win, but I have seen strange things happen before. The best thing for them is that they are not forced to convert, they are fully hedged, and next year they earn interest without having money committed on the table.
Zeev |
