Hong Kong Exchanges and Clearing Limited (HKEx) has announced trading arrangements for PCCW options and futures in the event the revised scheme for the proposed privatisation of the company is approved by the company's shareholders at an extraordinary general meeting scheduled to be held on 4 February 2009. 

PCCW Options

If the proposal is approved, no new expiry months or new option series will be introduced following the approval, and there will be no PCCW option contracts available for trading after 16 February 2009. 

All outstanding PCCW option contracts, regardless of their maturity, will be converted into their intrinsic values in cash on 16 February 2009 based on the cash privatisation offer of $4.50 per share.

PCCW Futures

If the proposal is approved, no new contract months will be introduced following the approval, and there will be no PCCW futures contracts available for trading after 16 February 2009. 

All outstanding PCCW futures contracts, regardless of their maturity, will be converted into their cash values on 16 February 2009 based on the cash privatisation offer of $4.50 per share.

The above arrangements will only be implemented if the proposed privatisation scheme is approved. Otherwise, trading of PCCW option and futures contracts will remain normal.  Market participants who have open positions in PCCW option or futures contracts should consult their brokers or financial advisers regarding the details of the above arrangements if they are implemented.

(Note: HKEx issued a news release on 24 December 2008 titled: PCCW Options and Futures and the Proposed Privatisation of the Company.)