will kerry pay back on sevpc?

There is an anomoly in SEV...Kerry (the EGO) Stokes has a swag of ordinary shares and doesn't want any dilution because he sees SEV as his personal sandpit and plaything (the other directors are only there to fetch his toys when he wants them).

He has no SEVPC that I can see and yet SEVPC represent a substantial portion of the equity and a massive dilution of equity if they are converted into ord shares at the step up date.

Plus, Kerry really pushed to get a share buy back scheme going and they are actively buying back ordinary shares...so Kerry's percentage of the company is growing.

Now given the SEVPC represent an interest rate of around 8% per annum...you'd think they'd use the excess SEV cash to get rid of them...but no, it's ord shares.

What's Kerry's personal game plan here and does this represent a potential future problem for SEVPC holders?

BTW....this issue aside, I think that holding the preferential SEVPC is a brilliant way to get a guaranteed return and from a company that effectively has no debt and approx $1bn in free cash/investments...and a built in capital gain of around 17% by May 2010.