Why would a fund pay full price for something that they could just buy on market? It's a discount to make it attractive to them, similar to when companies do a SPP. They offer a discount to entice. Paladin the other day sold their holding in Lotus for a 10% discount to a fund. Why didn't they try sell on market? They knew they would drive the price down further.
If they exercised the options and then try sell a 6% position on market they are going to drive the price down and realise smaller gains.
If they were concerned about fees (which is doubtful) selling an option with a $6 intrinsic value is cheaper than selling on the market at $9 for example.
The point I'm trying to get across is that if they didn't want the position, they would have already sold it.
Ann: Becoming a substantial holder, page-26
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