This is interesting...Three INR options (ex 27c...31/12/08) for...

This is interesting...

Three INR options (ex 27c...31/12/08) for every 4 GUJO.

We get an extra 12 months!

With INR trading at 62c, these new 27c options (with some 16 months of life), would likely be trading closer to 45c. (62-27=35+10c=45c)

Lets do the maths...

3 INRO (x 45c) = $1.35 / 4 = 33.75c per GUJO...or in other words, the underlying value of the GUJO's as of tonight are some 33.75c versus a close of 19.5c

lol...the options just got better!

However, it looks like the new INR options will not be listed, as such, their inherent value will only be realised via exercise as an unlisted security.

Fine by me.

Given this format however, it appears the company would like to see as many options excercised as possible prior to the merger...but I wonder why they bothered to release this in a seperate announcement?

Anyway...the GUJO's cannot get worse than the underlying GUJ price minus 20c, by virtue of the fact we need simply exercise to redeem this value...but frankly, for me, the option just became far more attractive, as now we get to do absolutely nothing and retain 16 months of upside in the new entity.

Cheers!