RE:RE:Value of U debenturesAlso, if rejecting the deal was a matter of going concern, they would have been required to write it in the prospectus.
They clearly write that if the deal is rejected, they will fund it otherwise, citing cash, other debt, and at worst shares at a 5% discount (basically, you get $105.2 worth of shares per $100 of debentures if they were to fully pay with shares).
Since they already offered to pay 22% in cash, I doubt that if the deal gets rejected they pay less than that in cash (considering the dilution for their two big funds holding over 50% of commons).
Based on today's price, if the deal is rejected and they pay 100% in shares, the shares would have to drop 24% from the date of closing for holders to get less cash than the trade value today. If they pay 22% in cash, the shares would have to drop 37% from the date of closing for holders to get less cash than the trade value today.
This deal is proposed to protect the big funds that hold common shares (else the premium wouldn't be 300% on conversion) at the expense of the smaller holders of the debentures. Unfortunately, many smaller holders will bend over even if it's a terrible deal.