Lucky, Odds are high that they hedged against the deal.
Funds that specialize in convertible hedging had the biggest influx of any financial asset class in H1 of 2003.
The stock had an exponential rise (in case you missed it, lol). They would have used an offshore hedge fund to short the stock overseas and cover themselves, locking in a huge gain.
Odds are they hedged the guaranteed portion of the deal (19.9% of the then current shares outstanding, or around 10.6MM shares.
They might not have hedged the warrants, so we could see as many as 1.9MM shares hit the market (the numnber they just exercised). But since they are probably smart players(since they do this for a living), they probably already hedged off their whole exposure. My guess is that they probably hold around 1.2MM shares, but there is no way of knowing precisely.
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