Catalyzes the formation of an unusual C-P bond that is involved in the biosynthesis of the antibiotic bialaphos (BA). Catalyzes the rearrangement of the carboxyphosphono group of CPEP to form the C-P bond of phosphinopyruvate. 1-carboxyvinyl carboxyphosphonate + H(+) = 3-(hydrohydroxyphosphoryl)pyruvate + CO2 Secondary metabolite biosynthesis; bialaphos biosynthesis. Belongs to the isocitrate lyase/PEP mutase superfamily.