The policy to be followed for listed equity options and futures when the underlying shares are no longer traded at Euronext Amsterdam is described below.
Continuing to list options and/or futures
If, after a merger or acquisition, the shares of the resulting company (merger) or acquiring company (acquisition) are listed at Euronext Amsterdam, the options and/or futures will continue to be listed. Moreover, as a rule the options and/or futures will also continue to be listed if the company is officially listed on another stock market. In that case, the shares may be included in the traded-but-not-listed segment of Euronext Amsterdam's Stock Exchange.
In certain cases Euronext Amsterdam may decide, for reasons connected with protecting investors or for technical reasons, that the options and/or futures should be delisted and that open positions should be settled in cash at their fair value (options) or theoretical value (futures).
Application of fair value method and calculation of theoretical value
If the decision is made to delist the relevant options and/or futures, the fair value and/or theoretical value will be calculated in accordance with the method set out in Euronext Amsterdam's rules and regulations (Listing and Trading Rules for Screentrading, appendix F and Listing and Trading Rules, appendix G, respective Listing and Trading Rules for Screentrading, appendix G).
The cash settlement paid out to investors will therefore be based on this amount, and not on the amount of the bid, as has been the case. The Cox-Rubenstein option valuation method will be used for all option series. The theoretical model for futures will be used for all futures contracts.
If a merger or acquisition involves a cash bid, positions in options and/or futures will be settled in cash at their fair value (options) or theoretical value (futures).
Euronext Amsterdam reserves the right in exceptional circumstances to consult a panel of market participants and independent experts in order to calculate the fair value and/or theoretical value instead of using the results of the formulas described above.
Fair value for special products
Issuers of special products (including warrants) will be required to use the same fair value or theoretical value (as appropriate) for newly listed special products. If they wish to use a different system this must be explained in detail in a separate section of the prospectus.
Publication in national daily newspaper
In the case of corporate events in which the underlying shares of listed options and/or futures are no longer listed or traded at Euronext Amsterdam, Euronext will publish a notice or announcement containing the information provided to members in a national daily newspaper.
The chart in Euronext Announcement 2001.045 describes the policy to be followed when the underlying shares of listed equity options and futures are no longer listed or traded at Euronext Amsterdam. The full text of the Euronext announcement can be read at the Dutch section of www.euronext.com /Euronext Amsterdam click news, click euronext announcements (2001.045).
