International Power (UK) takeover

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 ?

read the offering…the note problably converts at some time into more shares or something…

no, it doesn’t convert, and is callable by the issuer (for cash) under certain circumstances, and to my mind, the issuer should be paying more for that embedded option

I’ve read parts of the offering, which says in something like 50 pages what could have been said in 5 or 10 lines