ooraminna 2 still at 1085 m 6 july , page-106

I guess I'll throw my 2 cents worth in too but this is simply my opinion and not based on expert knowledge of Takeover Legislation.

An Option is a type of contract and cannot be simply cancelled by a T/O as far as I am aware. If a coy. makes a T/O offer and does not provide for the options, the Options simply continue to exist pursuant to the original terms under which they were issued. The rights under the options remain and they can simply be converted anytime prior to expiry.

If there is any provision under takeover legislation in the Corporations Law that cancels options when a takeover offer is made then I am not aware of it but it would seem to me to be contrary to normal commercial law and inequitable. You can't normally take away contractual rights without adequate consideration.

IMO a T/O to be effective must make an allowance to option holders or will be subject to the ultimate conversion of those options. Happy to be corrected if I am wrong but that's the way I see it.

ANZ