Their business is potentially worth much more than 7170 BTC and they would have no problem raising that much from a VC. 2M USD is pocket change for a VC. As a long time partner of BTER Bitshares is in a great position to close a deal first but we shouldn't ruin that opportunity by making a low ball offer.
A share dilution to support shorting 7170 bitBTC won't even affect the BTS price since the created BTS will be immediately locked in as collateral so it won't inflate the money supply.
It will need a 10% inflation at the current prices. the main issue though would be about running it. Will we be getting competent delegates to run it? BitShares is a decentralized movement and running an exchange directly doesn't seem to fit well, especially since we believe that if we are successful we won't need actual centralized exchanges.
How much of licensing they have anyway? CNY is possible through tradebts, and I doubt Bter has any USD licenses.
We can create a new DAC with 1:1 mapping of stake to real shares of the BTER company, which means that one unit of BTER stake entitles to the dividends of one unit of real BTER company shares and to one vote at the board. Thanks to that mapping, you can keep running BTER as a normal company and progressively DACify the management process as the ecosystem and management tools gets more mature. Meanwhile the shareholders can elect delegates to represent the DAC at BTER board.
Recapitalization of BTER can then be done without a share dilution. We can just organize a crowd sale of BTER shares so interested parties can invest in BTER. That way Bitshares isn't directly affected by the acquisition but still gets the benefits of having a large on/off-ramp tighly integrated in the eco-system. Holders of balances at BTER can elect to participate to the crowdsale at preferential rate and redeem BTER stake in lieue of their currency balance. This would help reducing further the pressure of the loss.
That would be a very exciting opportunity and it would feel very reassuring for BTER users to know that the exchange is now operated under tight control from a Bitshares DAC and cold wallets are controlled by delegates using multisig. For Bitshares the benefit is enormous as we can make bitAssets a central element of the trading books and ensure that bitAsset markets are getting always more liquidity until the point where the peg is so tight that we can start accepting 1:1 deposit / withdrawal between BTER balances and corresponding BitAssets.