I just checked my Kobo purchases (Last Night In Twisted River and U is For Undertow), and, from what I can tell, I can only download them as epub. When I click on the download button, I get a file with extension acsm, which I beleive kicks off ADE, which means it has DRM. It says "available for Web, Mobile, EPub", but the only option I seem to be able to download the book for is EPub).
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I was free to download .epub files with my browser (Chrome) which saved them to disk.
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Gotcha. I thought you were using the Kobo iPad app, so I was curious to know how you were getting them into iBooks.