dumping set to continue - 20 mill more , page-29

62Strat,

I see what JR is saying about the exchange rate. Time for ML to lock in a high AU$ exchange rate by selling AU$ denominated assets and repatriating to US$ before AU$ takes a tumble. Problem with that argument is that the convertible note is also denominated in US$ so it will be eaten into at the same high AU$ exchange rate so the exchange rate argument cancels out. Don't think the conversions and dumping are explained by the current exchange rate.

The only other reason I can come up for the conversion and subsequent dumping is to further lower the conversion price for the remaining portion of the convertible note. But going back to the 1 Sept 2006 Appendix 3B, I can't make out the next reset date or the formula for calculating the new conversion price. I am taking a guess that the next reset date will be end of this month i.e. 28 February 2011, being 6 months after 1 September 2010. If ML get the VWAP for the 20 day trading period low enough, they can get the conversion rate further lowered for the remaining balance?