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Technology Stocks : Global Crossing - GX (formerly GBLX) -- Ignore unavailable to you. Want to Upgrade?

To: DWB who wrote (4701)	3/3/2000 5:12:00 PM
From: John Biddle	Respond to of 15615

Do you know how each of these effects holders of options of the parent company? For instance LEAPS Calls holders when a Spin-off or tracking stock is created? I am less sure of myself here, than on the stock, but I believe that option and LEAP holders get treated much the same as shareholders, i.e., they would get options or LEAPs on the NewCo stock, and their existing options and LEAPs on the OldCo would be adjusted to reflect their reduced value. For OldCo, I don't believe the number of contracts would be affected, and of course all contracts stay at 100 shares. As far as how they figure the relative value of the two companies, I don't know.