I wish there was a little bit of time between when the relevant price is set and when the tender occurs. The way it is now, you have to decide to tender without knowing how many shares you will get in the process (this could be good or bad for you).
Here's an analogy: We would like for you to buy some hamburgers from us one week from Friday, but we do not know how much we are going to charge you for them. We will use the average auction price of our hamburgers for the five days preceding that Friday to decide how much you will have to pay for the hamburgers that you will buy. How many hamburgers can I put you down for?
I'm wondering if you can tell us what is your game plan for the conversion. Did you sell short your future common already or you will be doing that next week or even after conversion. Is there any specific reason for your plan? I want to know how preferred think in this case. As you said you don't know how many common you'll receive at this point and can't sell short exact number now. This will be one of key clue what will happen next week. FYI: I'm long for common. Thanks!
You sound sincere, but I am not going to disclose too much of my strategy since I am tired of getting blasted by know-it-alls (not saying you are one of them).
Here's the short version:
I never short stocks, I simply "trade to accumulate" (for example, buy 500 shares on a dip, sell 400 on a spike) I day-trade (or "week-trade") the common I bought the preferred as an arbitrage play for the common conversion.
I will continue to be long this stock for a lot of reasons. My goal is to actively trade the stock until I am playing with the house's money.