amalgamation, page-13

Hollywood, I'm not sure of a difference, if any, between how options would be treated under a merger as opposed to a takeover.

In past takeovers I've been involved in option-holders have had the choice to exercise their options and then participate in the offer, or simply miss out altogether. Looks like your options are in the money or you're SOoL.

I've been trying to find a legal reference for this but I've had no luck. But here's an example. In this case Barrick is happy to pay you the amount you are in the money, in cash:

"Treatment of outstanding Options and other securities

The Barrick Offer is made only for Common Shares and is not made for any Options or other securities of Equinox that are convertible into or exchangeable or exercisable for Common Shares (other than SRP Rights). Any holder of Options or other securities of Equinox that are convertible into or exchangeable or exercisable for Shares (other than SRP Rights) who wishes to accept the Barrick Offer must, to the extent permitted by the terms of the security and applicable Laws, exercise, exchange or convert such Options or other securities of Equinox that are convertible into or exchangeable or exercisable for Common Shares in order to acquire Common Shares and certificates representing such Common Shares and deposit such Common Shares in accordance with the terms of the Barrick Offer..."

Full text here: http://media.wotnews.com.au/asxann/01177396.pdf