Shareholders here have to understand that at the end of the day,...

Shareholders here have to understand that at the end of the day, the board of directors at SK have an obligation to its shareholders as well. How could the board of SK possibly justify buying 20% of a public company for a 140% premium to the current share price? The SK option will likely not be exercised.

It would be better for SK to wait it out till the end of the year when cash is a huge issue in AUZ and accumulate shares at a steep discount to todays prices.

Yesterday's announcement with convertible debt with Bergen was very negative. I haven't seen one company on the ASX which has not undergone share price drops after taking on such debt

Take this example:
1. Borrow 50 million shares from an entity to start a short position
2. Aggressively sell these shares to cause a huge share price decline
3. In a week, when my convertible gets changed to ordinary shares, I will receive 50 million shares or more which will allow me to close my short position without buying any shares on market. This leaves the market with the new shares at a lower share price. This process occurs until all convertible debt has been changed to shares.

This is the issue with convertible debt. All Bergen needs to do is calculate where they can get the share price and short by that number of shares. Then the new shares received automatically cover their short position. Another benefit to Bergen with shorting the stock earlier than receiving shares is that they get the money now to continue operations elsewhere.