PABO and PABOA strike price?, page-25

"Do you know how options are treated"
Curly that is a good question. I have thought about it before but never seriously researched it. Just had a quick look at the Corporations Act (which is bigger than Ben Hur) and came up with the following section -

617 Securities covered by the bid

Off‑market bid

(1) An off‑market bid must relate to securities:

(a) in a class of securities (the bid class); and

(b) that exist or will exist as at the date set by the bidder under subsection 633(2).

Note: Subsection 92(3) defines securities for the purposes of this Chapter.

(2) If other securities exist or will exist at that date that:

(a) will convert, or may be converted, to securities in the bid class; or

(b) confer rights to be issued securities in the bid class;

the bid may extend to securities that come to be in the bid class during the offer period due to a conversion or exercise of the rights.

Note: The bidder’s statement must say if the bid is extended in this way (see paragraph 636(1)(j)).

I am not the sharpest tool in the pack but I think that what it means is that how the oppies are dealt with will be specified in the offer and holders will have the opportunity to consider it at that stage. If we have any experts out there who know different I would stand corrected.