I think you missed the critical point.You short the share up to...

I think you missed the critical point.
You short the share up to or around the number of shares that you will get on conversion & then use the converted shares to repay the shares borrowed.
So at the end of the day they end up with no shares & a pile of cash, the money is made on the short not on the conversion.
Plus of course they get 8% a year interest on the convertibles, which more than likely would cover the fees to borrow the shares.

So no if someone does this it is not good in the short or long term (3 years+).


Basically if you think the share price will fall or even stay the same over the next 3 years you're better off owning the convertibles than the shares.
I've almost talked myself into selling up & putting it all in convertibles!