|Mon, 27 Nov 2000 10:20:32 +1300
My understanding is as follows:
Your friend has made a nice 50% ($3.60) profit on the shares to date and if he was to sell now he would not have to pay the second installment. He has until the 20th of December (from memory) to sell them and realise any gains made to date.
Holders of the share on that date will be responsible for the final payment. Between the 20th and the 27th of December trading in the share will be suspended and then after the Xmas break the fully paid NZ share will be traded at the new price (presumably whatever the share closed at on the 20th plus $4.75).
So in answer to your questions - no the price of the second instalment isn't included in the current price - the share has appreciated. Yes, if you bought the share today and still held it on the 20th of December, you would be required to stump up with another $4.75 per share.
In term of what is likely to happen to the price after January - who know. I'm picking it will keep on it's merry way. It has performed well to date when IRs have been trading at large discounts to head shares and WP keep on making ridiculous profits. Why wouldn't it?