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To: IndioBlues who wrote (57665)	12/31/1999 10:48:00 AM
From: marc chatman	Read Replies (1) \| Respond to of 95453

That's an interesting question. I am guessing that something happens to the derivatives so that their value doesn't deteriorate as a result of the spin-off. That's just an intuitive thought. Consider that someone bought SLB leaps or leap puts long before the deal was conceived. Those options shouldn't gain or lose value simply because the whole is split into two parts. But I don't know how the derivatives are reworked -- perhaps the SLB option holders now hold options on the new RIG shares.

To: IndioBlues who wrote (57665)	12/31/1999 11:18:00 AM
From: pt	Respond to of 95453

marc's guess is correct. Look at the options quotes on SLB and you'll see that the option base code changed overnight from "SLB" to "SLV." Although they aren't showing up in the option chains today, there will probably be new "SLB" options created that will be derived from the post-spin off SLB. The old SLB options, designated SLV, will carry with them the right to the RIG shares received in the spinoff and merger transaction. The call prices didn't plummet and the put prices didn't jump, which confirms the analysis. Paul