Once you read the numbers; you will know the opportunity to convert will never happen.
At the option of the holder, each trust preferred security is convertible into Alcatel-Lucent ADSs, subject to an additional adjustment under certain circumstances. The following table summarizes the terms of this security.
Conversion ratio 40.3306
Conversion price U.S.$24.80
Redemption period at Alcatel-Lucent USA Inc.’s option After March 19, 2007
Maturity date March 15, 2017
Fortunately I bought LUTHP at 554.59; so I am a happy holder. I just can't decide whether to run with the gain or stick while collecting for me what is a 12.9% yield (based on purchase cost), untill they redeem at 1000.
I am watching the bonds bid/ask trends in the market. I figger if the bids start trending lower for awhile, that tells me debt holders again are getting concerned with ALUs cash flow. Then I would probably bail.
Good luck to you!