Here is a quote of the answer to the opened support ticket:
Thank you for contacting us and for drawing our attention to this issue. I confirm it as bug, which was addressed and the fix will be available in the next internal build of KendoUI. For now you can overcome this problem using the current() method of the DropDownList. Check this jsFiddle demo for information.
As a token of gratitude for your involvement I have updated your Telerik points.
the Telerik team
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