options, page-4

The same as heads tradesido. Either you accept the offer or you don't. You have lots of options really. These include:

Accept the offer and wait for a cheque or a check if your an American
Sell options on market
Exercise options and sell them as heads on market
Exercise options and accept offer
Exercise options and ignroe the offer
Do nothing and waity to see what happens

If you have enough options or heads (10.000001%) then they need to negotiate with you, ie offer you an additional premium if they want to achieve 100% ownership. They can't go to compulsory acquisition until they get 90%.

Not that I want a TKO or think it likely but since it comes up every week I'll go on record as saying that the options holders would be the biggest beneficiaries of a TKO offer (after management). Any TKO will have to be at a significant premium to market which means a % gain over current prices. For every 1c the offer is above the current market price for heads the holder of the heads makes an additional 9.52%. For the same 1c increments each option holder makes an additional 11.5%.

The above assume an on market difference between the heads and options of only 1.5c. Currently the differences is 1.8c. This difference is an additional premium that would flow through to the options holders int he event of an offer. This means that based on current options prices the options holders would actually get 15% for every 1c above current heads trading price. So 9.52% heads vs 15% return on options (per 1c premium). No brainer.

It stikes me as strange that anybody is even buying heads when you get the same exposure to the same company at much better odds with the options.