certainly isn't giving the new deal a big vote of confidence. To me, it seems very clear that the new deal would virtually assure one thing - No BR for PZN. The new plan brings in new cash, results in lower negotiated (compared to now) interest rates on their LOC, deREITs for 2000 (I read that in a news release this weekend) thus virtually ending the cash drain.
You are right - the new deal has to be good for PZN. It avoids the totally unnecessary cash drain of paying 1999 dividends in cash or paying 1999 taxes in cash. That move should have been obvious to ML. Plus, it brings in new cash at a price that all existing shareholders can participate in if they like, or can "put" to PL if they don't.
What's not to like about that deal?
IOM neither the preferred nor the common is reacting with exuberance, but that's because nobody (including yours truly) is eager to jump on board this boat until the drunken captains are gone.