impact of dkr selling

DKR has been converting and selling since the anniversary of their deal at the end of Nov 2006. They have 6 months in all before their convertibles can be resumed at 103% of cost or $3.0385/share. Since they are likely to stay in the money then all their notes will be converted in that time. To date they have sold all and that has represented 76% of all activity. Take away the churning whereby people lock in CGT events without changing net holdings and the non-DKR selling amounts to almost nothing in 3 months. It appears then that virtually all holders are fully aware of the situation with no-one selling and a few simply acquiring DKR shares as they become available and for as low a price as possible. By the time managementand CS start the pre-IPO PR blitz the overhang should be reduced to an unimportant level. Management wants the shareprice reached pre-IPO to approach the level expected from the valuation analysis to be released in the prospectus.