Some relatives of mine in the UK own a small amount of International Power stock, dating from when the power companies there were denationalized.
International Power is being taken over by a non-UK company (Gaz de France Suez or something like that).
It’s a cash offer, but you have the option of taking the proceeds in a note instead.
As far as I can tell:
3 year note paying 0.25% per annum and they make the point of stating that it’s not a bond, so presumably it’s unsecured and subordinate to other debt.
My question: I can’t see why anyone would take a note paying such a small amount of interest over cash. Can anyone suggest why you would ?