  Puzzling disagreement between photoemission and optical findings in
magnetically doped GaN and ZnO is explained within a generalized alloy theory.
The obtained results show that the strong coupling between valence-band holes
and localized spins gives rise to a mid-gap Zhang-Rice-like state, to a sign
reversal of the apparent p-d exchange integral, and to an increase of the
band-gap with the magnetic ion concentration.
