certainty leads to share price appreciation, page-18

karll old chap,
I think you will find that the best that can happen to oppies in a takeover is that the holder converts in the allowed time frame in which case the heads become part of the deal. and this would only make sense if the oppies were in the money, so far as the takeover offer was concerned. unexercised oppies simply vanish from consideration, except that the purchase cost can be claimed as capital loss for tax purposes. options do not represent equity, only the option to acquire equity. this is my understanding, not advice to be acted upon without confirmation. though by memory this topic has been on this forum many times in the past.
trust this helpful.