As noted in the Vedior Offering Memorandum published on 22 May 1997, the shares of Vendex International N.V. are expected to split into Vendex and Vedior. Barring unforeseen circumstances, the specifications of options on Vendex International will be adjusted as follows.
In the adjustment of options series, special attention is given to the preservation of the economic position of the option holder. In this case, the share option on Vendex International will be adjusted at the time of the split-up and converted into an index option: exercising this index option will result in the delivery of both stocks, Vendex and Vedior. The number of shares of Vendex and Vedior in the index basket will be fixed in accordance with the specifications of the split-up.
No new series will be introduced in the index options thus created. Amsterdam Exchanges will in due time decide whether or not new options are to be introduced on Vendex and/or Vedior.
If Vendex International is selected for inclusion in the AEX-index and Vendex splits after 15 February 1998, the date on which the index is reweighted, the index rules stipulate that both Vendex and Vedior must be included in the index. Vendex International weighting in the index will then be distributed over the two stocks in accordance with their market capitalisation. The index will therefore consist of 26 stocks until the 1999 revision. If that portion of Vedior which has already been placed also qualifies for selection in the AMX-index and Vendex International splits after the date of the reweighting, Vedior will temporarily be included in both the AEX-index and the AMX-index.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
For further information contact Raymond Salet, Amsterdam Exchanges AEX Amsterdam: 00 31 20 550 4433 or Paddy Manning, St James Corporate Communications London: 44 171 436 4101.
