"NAME OF REPORTING MANAGER : KELLNER, DILEO & CO."
			Fair			Investment Discretion	 Voting
  Name of Issuer	Title of 	CUSIP	Market	 Shares or		Discretion	Authority		Price
	Class	 Number	 Value	 Principal
			    (thousands)	  Amount

AFC Enterprises Inc.	Com	00104Q107	342 	"42,766 "		SOLE			7.990
Acxiom Corp	Com	005125109	547 	"47,611 "		SOLE			11.490
Adaptec Inc.	Com	00651F108	565 	"176,700 "		SOLE			3.200
Allis Chalmers Energy Inc.	Com Par $.01NW	019645506	"(1,392)"	"(78,200)"		SOLE			17.800
Altria Group Inc.	Com	02209S103	439 	"21,364 "		SOLE			20.560
Amazon Com Inc	Com	023135106	498 	"6,788 "		SOLE			73.330
Amazon Com Inc	Note 4.75% 2/01/2009	023135AF3	723 	669 		SOLE			108.120
American Capital Strategies 	Com	024937104	"(1,189)"	"(50,000)"		SOLE			23.770
American Int'l Group Inc.	Com	026874107	(675)	"(25,500)"		SOLE			26.460
American Int'l Group Inc.	Unit 99/99/9999	026874115	"1,170 "	"19,600 "		SOLE			59.710
Anheuser Busch Cos Inc.	Com	035229103	"3,764 "	"60,600 "		SOLE			62.120
Ansoft Corp.	Com	036384105	"4,324 "	"118,800 "		SOLE			36.400
Ansys Inc.	Com	03662Q105	"(2,418)"	"(51,307)"		SOLE			47.120
Apogent Technologies Inc.	DBCV 12/15/2033	03760AAK7	"1,917 "	"1,000 "		SOLE			191.700
Applera Corp	Com Ap Bio Grp	038020103	"1,312 "	"39,200 "		SOLE			33.480
Archer Daniels Midland Co	Com	039483102	(236)	"(7,000)"		SOLE			33.750
Archer Daniels Midland Co	Unit 99/99/9999	039483201	394 	"9,000 "		SOLE			43.790
Aspen Insurance Holdings Ltd	Shs	G05384105	"(1,291)"	"(54,545)"		SOLE			23.670
Assisted Living Concepts Inc	Cl A	04544X102	454 	"82,478 "		SOLE			5.500
B & G Foods Inc New	Unit 99/99/9999	05508R205	"1,700 "	"100,000 "		SOLE			17.000
BCE Inc.	Com New	05534B760	"3,269 "	"93,900 "		SOLE			34.810
Basic Energy Services Inc. New	Com	06985P100	"1,235 "	"39,200 "		SOLE			31.500
Bauer Eddie Hldgs Inc.	Com	071625107	299 	"72,144 "		SOLE			4.150
Best Buy Inc.	Com	086516101	(242)	"(6,110)"		SOLE			39.600
Bois D' Arc Energy Inc.	Com	09738U103	"4,952 "	"203,700 "		SOLE			24.310
Brinks Co	Com	109696104	639 	"9,766 "		SOLE			65.420
Bristol Myers Squibb Co	Com	110122108	351 	"17,100 "		SOLE			20.530
Bronco Drilling Co Inc	Com	112211107	"8,624 "	"469,200 "		SOLE			18.380
Bunge Limited	Com	G16962105	"(3,672)"	"(34,095)"		SOLE			107.690
C & D Technologies Inc.	Com	124661109	251 	"29,616 "		SOLE			8.460
CA Inc	Com	12673P105	"(1,946)"	"(84,300)"		SOLE			23.090
CKX Inc	Com	12562M106	"3,189 "	"364,482 "		SOLE			8.750
CME Group Inc.	Com	12572Q105	"(3,177)"	"(8,291)"		SOLE			383.190
CMS Energy Corp	Com	125896100	"(2,317)"	"(155,490)"		SOLE			14.900
CSK Auto Corp	Com	125965103	"2,545 "	"242,800 "		SOLE			10.480
CVS Caremark Corporation	Com	126650100	517 	"13,075 "		SOLE			39.570
Celanese Corp. Del	Com Ser A	150870103	"(4,801)"	"(105,150)"		SOLE			45.660
Celanese Corp. Del	Pfd 4.25% Conv	150870202	"5,199 "	"88,499 "		SOLE			58.750
Chesapeake Energy Corp	Com	165167107	"(6,266)"	"(95,000)"		SOLE			65.960
Chesapeake Energy Corp	Pfd Conv	165167842	"6,977 "	"43,200 "		SOLE			161.500
Choicepoint Inc.	Com	170388102	"3,779 "	"78,400 "		SOLE			48.200
Clear Channel Communications	Com	184502102	"6,026 "	"171,200 "		SOLE			35.200
Computer Assoc Int'l Inc	Note 1.625% 12/15/2009	204912AQ2	"2,482 "	"2,000 "		SOLE			124.120
Corn Prods Int'l Inc.	Com	219023108	"1,537 "	"31,300 "		SOLE			49.110
Covidien Ltd.	Com	G2552X108	644 	"13,441 "		SOLE			47.890
DRS Technologies Inc.	Com	23330X100	"6,731 "	"85,500 "		SOLE			78.720
Diebold Inc.	Com	253651103	"2,234 "	"62,800 "		SOLE			35.580
Dominos Pizza Inc	Com	25754A201	(281)	"(24,416)"		SOLE			11.500
E M C Corp Mass	Com	268648102	633 	"43,075 "		SOLE			14.690
E Trade Financial Corp	Com	269246104	(293)	"(93,250)"		SOLE			3.140
El Paso Corp	Com	28336L109	"(2,400)"	"(110,400)"		SOLE			21.740
Electronic Data Sys Corp New	Com	285661104	"8,673 "	"352,000 "		SOLE			24.640
Emmis Communications Corp	Cl A	291525103	516 	"204,576 "		SOLE			2.520
Energy East Corp	Com	29266M109	"1,938 "	"78,400 "		SOLE			24.720
Esmark Inc.	Com	296475106	"5,711 "	"298,700 "		SOLE			19.120
Federal Nat'l Mtg Assn	Com	313586109	(726)	"(37,200)"		SOLE			19.510
Freeport-McMoran Copper & Gold Inc	Pfd Conv	35671D782	"6,674 "	"39,700 "		SOLE			168.120
Freeport-McMoran Copper & Gold Inc	Cl B	35671D857	"(23,891)"	"(203,867)"		SOLE			117.190
Getty Images Inc.	Com	374276103	"1,859 "	"54,800 "		SOLE			33.930
GLG Partners Inc.	Com	37929X107	(548)	"(70,200)"		SOLE			7.800
GLG Partners Inc.	W exp 12/28/2011	37929X115	212 	"108,700 "		SOLE			1.950
Greenfield Online Inc.	Com	395150105	706 	"47,300 "		SOLE			14.920
Grey Wolf Inc.	Com	397888108	"(1,302)"	"(144,200)"		SOLE			9.030
Health Care Reit Inc.	Com	42217K106	(806)	"(18,104)"		SOLE			44.500
Health Care Reit Inc.	Pfd G Cnv 7.5%	42217K502	810 	"25,300 "		SOLE			32.030
Hecla Mining Co.	Com	422704106	(309)	"(33,360)"		SOLE			9.260
Hecla Mining Co.	6.5% Conv Pfd 	422704304	444 	"4,600 "		SOLE			96.500
Hershey Co.	Com	427866108	(300)	"(9,154)"		SOLE			32.780
Hireright Inc.	Com	433538105	"2,681 "	"156,800 "		SOLE			17.100
Huntsman Corp	Com	447011107	"1,097 "	"96,200 "		SOLE			11.400
Industrial Distrib Group Inc.	Com	456061100	929 	"77,600 "		SOLE			11.970
Inverness Med Innovations Inc	Com	46126P106	"(1,211)"	"(36,500)"		SOLE			33.170
Invitrogen Corp	Com	46185R100	(461)	"(11,730)"		SOLE			39.260
Ishares Tr	Russell 2000	464287655	"(2,457)"	"(35,590)"		SOLE			69.050
Ishares Tr	DJ US Real Est	464287739	(698)	"(11,482)"		SOLE			60.800
Kansas City Southern 	Com New	485170302	"(5,129)"	"(116,605)"		SOLE			43.990
Kaydon Corp	Com	486587108	"(1,956)"	"(38,050)"		SOLE			51.410
Kaydon Corp	Note 4.000% 5/23/2023	486587AB4	"1,987 "	"1,125 "		SOLE			176.660
Legg Mason Inc.	Com	524901105	(449)	"(10,300)"		SOLE			43.570
Legg Mason Inc.	Unit 99/99/9999	524901303	685 	"16,300 "		SOLE			42.040
Lehman Bros Hldgs Inc	Com	524908100	(535)	"(27,000)"		SOLE			19.810
MF Global Ltd	Shs	G60642108	(375)	"(59,400)"		SOLE			6.310
Marsh & McLennan Cos Inc	Com	571748102	487 	"18,329 "		SOLE			26.550
McDermott Int'l Inc	Com	580037109	317 	"5,126 "		SOLE			61.890
Metavante Technologies Inc	Com	591407101	414 	"18,312 "		SOLE			22.620
Midcap Spdr Tr	Unit Ser 1	595635103	"(1,072)"	"(7,205)"		SOLE			148.800
Mirant Corp New	Com	60467R100	"(1,840)"	"(46,997)"		SOLE			39.150
Mirant Corp New	W exp 01/03/2011	60467R118	536 	"29,642 "		SOLE			18.090
Mirant Corp New	W exp 01/03/201	60467R126	670 	"34,950 "		SOLE			19.160
Mylan Inc	Com	628530107	(448)	"(37,155)"		SOLE			12.070
Mylan Inc	Pfd Conv	628530206	"1,359 "	"1,545 "		SOLE			879.500
NRG Energy Inc	Com New	629377508	"(10,407)"	"(242,584)"		SOLE			42.900
NRG Energy Inc	Pfd Conv Mand	629377870	"3,228 "	"8,837 "		SOLE			365.240
NYMEX Holdings Inc.	Com	62948N104	"5,297 "	"62,700 "		SOLE			84.480
Nabi Biopharmaceuticals	Com	629519109	240 	"61,025 "		SOLE			3.940
Nationwide Fin'l Svcs Inc.	Cl A	638612101	"3,010 "	"62,700 "		SOLE			48.010
Navteq Corp	Com	63936L100	"9,425 "	"122,400 "		SOLE			77.000
New York Cmnty Bancorp Inc.	Com	649445103	(701)	"(39,300)"		SOLE			17.840
New York Cmnty Cap Tr V	Bonuses	64944P307	852 	"17,947 "		SOLE			47.500
Newcastle Investment Corp	Com	65105M108	(386)	"(55,000)"		SOLE			7.010
Omnicare Inc.	Com	681904108	"(1,188)"	"(45,300)"		SOLE			26.220
Omnicare Cap Tr II	Pfd B Tr 4.00%	68214Q200	"1,768 "	"45,500 "		SOLE			38.860
O'Reilly Automotive Inc.	Com	686091109	(862)	"(38,565)"		SOLE			22.350
Pacific Sunwear Calif Inc.	Com	694873100	(116)	"(13,548)"		SOLE			8.530
Perrigo Co.	Com	714290103	280 	"8,798 "		SOLE			31.770
Philip Morris Int'l Inc.	Com	718172109	750 	"15,187 "		SOLE			49.390
Photon Dynamics Inc.	Com	719364101	"1,182 "	"78,400 "		SOLE			15.080
Polaris Inds Inc.	Com	731068102	(296)	"(7,331)"		SOLE			40.380
Priceline Com Inc	Com New	741503403	"(22,769)"	"(197,200)"		SOLE			115.460
Priceline Com Inc	Note 2.250% 1/15/2025	741503AH9	"7,325 "	"2,400 "		SOLE			305.220
Priceline Com Inc	Note 1.00% 8/1/2010	741503AJ5	"15,876 "	"5,500 "		SOLE			288.650
Prudential Fin'l Inc.	Frnt 12/12/2036	744320AG7	"2,274 "	"2,320 "		SOLE			98.000
Radyne Corp	Com New	750611402	"2,239 "	"195,900 "		SOLE			11.430
Raytheon Co	W exp 06/16/2011	755111119	809 	"41,400 "		SOLE			19.540
Raytheon Co	Com New	755111507	"(2,268)"	"(40,300)"		SOLE			56.280
Realnetworks Inc.	Com	75605L104	242 	"36,615 "		SOLE			6.600
Redwood Tr Inc.	Com	758075402	(221)	"(9,700)"		SOLE			22.790
Rosetta Resources Inc	Com	777779307	874 	"30,650 "		SOLE			28.500
SLM Corp	Com	78442P106	"(1,142)"	"(59,000)"		SOLE			19.350
SPDR Tr	Unit Ser 1	78462F103	256 	"2,000 "		SOLE			127.980
SPDR Series Trust	KBW Regl Bkg	78464A698	(390)	"(14,646)"		SOLE			26.630
Safeco Corp	Com	786429100	"2,069 "	"30,800 "		SOLE			67.160
"Saks, Inc."	Com	79377W108	443 	"40,312 "		SOLE			10.980
Select Sector Spdr Tr	SBI Cons Discr	81369Y407	(980)	"(34,401)"		SOLE			28.480
Select Sector Spdr Tr	SBI Int-Inds	81369Y704	(206)	"(6,049)"		SOLE			34.010
Smith Int'l Inc.	Com	832110100	(936)	"(11,256)"		SOLE			83.140
Stone Energy Corp	Com	861642106	"(2,215)"	"(33,610)"		SOLE			65.910
Superior Essex Inc.	Com	86815V105	"1,749 "	"39,200 "		SOLE			44.630
Take-Two Interactive Software	Com	874054109	917 	"35,880 "		SOLE			25.570
Tercica Inc.	Com	88078L105	692 	"78,400 "		SOLE			8.830
Teva Pharmaceutical Inds Ltd	Adr	881624209	"(5,912)"	"(129,092)"		SOLE			45.800
Teva Pharmaceuticals Fin II L 	DBCV 0.25% 2/01/2024	88164RAB3	"6,791 "	"5,075 "		SOLE			133.820
Thermo Fisher Scientific Inc.	Com	883556102	"(1,795)"	"(32,200)"		SOLE			55.730
Third Wave Technologies Inc.	Com	88428W108	"2,611 "	"234,000 "		SOLE			11.160
Time Warner Inc.	Com	887317105	700 	"47,292 "		SOLE			14.800
URS Corp New	Com	903236107	574 	"13,685 "		SOLE			41.970
Virgin Media Inc.	Com	92769L101	(215)	"(15,800)"		SOLE			13.610
W-H Energy Svcs Inc	Com	92925E108	"2,250 "	"23,500 "		SOLE			95.740
Washington Mut Inc	Conv 7.75% Ser R 	939322814	220 	370 		SOLE			594.340
Wrigley Wm Jr Co	Com	982526105	"9,738 "	"125,200 "		SOLE			77.780
Yahoo Inc.	Com	984332106	488 	"23,640 "		SOLE			20.660