Scottish Re Group Ltd (fka SKRRF)

[h_man_investor]

"What are they waiting for" is an easy question to answer. They are waiting for the book value to continue to increase effectively earning the discount rate if they sold. Its a waiting game and they will maximize the recovery of their investment. Since they will not be writting any business its hard to imagine a scenario where they would want to be common shareholders.

I agree on your point of resetting the conversion rate but that will only increase the number of shares they convert into. The conversion price will always equal $600mm- if the conversion price decreases the number of shares will increase. This should not affect the preferred but will dilute the common more and decrease to book value.