The regulatory loophole they exploited only exists with cash settled options [1] - IIRC the hole will be closed this spring with new legislation. Btw. another G

The regulatory loophole they exploited only exists with cash settled options [1] - IIRC the hole will be closed this spring with new legislation. Btw. another German Company (Schaeffler) used the same loophole last summer to secretely buy Continental (with much less success, it seems). [1] Cash settlement - Cash-settled options do not require the actual delivery of the underlier. Instead, the corresponding cash value of the underlier is netted against the strike amount and the difference is paid to the owner of the option. http://en.wikipedia.org/wiki/Exercise_(options) http://en.wikipedia.org/wiki/Exercise_(options)