O2 share sale

[allgram]

Hello, Today i got the sell your shares form from telefonica,i dont really want to sell these but i cannot find out in the literature if i must sell, any help on this matter would be appreciated, Thank you, allgram

[MustafaTinkl]

Once Telefonica take O2 over the O2 shares cease to have any value. No Telefonica shares are being offered in exchange for the O2 shares. The choice is simply to take the money currently offered or an untradeable Telefonica loan note paying a low rate of interest which will be bought in by Telephonica in 6 years time at the price they are paying for the O2 shares today. I've opted for the money.

[dzug]

You have to sell if sufficient other shareholders (75% I think) accept the offer. You'll get the money quicker if you accept the offer rather than waiting for compulsory purchase.

The loan note alternative is for those with Capital Gains Tax problems.

[james412]

The Motley Fool O2 thread had a couple of questions similar to yours. The replies were:

'If the offer is successful you have no choice but to take the cash (or loan note alternative).'

and

'If you ignore the offer and if all goes to plan you will get a cheque a month or two after they have paid everyone who has accepted -'compulsory acquisition' is the term.'