One of my parents had employee options in a company that was based in the US. Recently however, that US company had been sold off to a German company (now based in Germany).

Question is, what happens to those options? I come from a little to no experience on these financial issues. Does the fact that the two companies are now on separate sides of the globe present any legal issues?

  • 1
    Employee options, or exchange traded? What country are your parents in? – JTP - Apologise to Monica Mar 9 '14 at 19:29
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    US. Company is based in the US, but was sold off to a foreign company (and is now based in Germany). And yes, employee options. – yuritsuki Mar 9 '14 at 19:49
  • Is the German company public? If so - on what exchange? – littleadv Mar 9 '14 at 19:59
  • It's a private company, unfortunately. It's SUNI medical imaging – yuritsuki Mar 10 '14 at 3:00

You should ask the company, there's no one rule. From my observations, what usually happens is that the old options are replaced with the new options in the new company, and with a new vesting schedule. But that doesn't have to be like that, the old options may be cancelled, bought out, replaced with the stocks of the new company, etc etc. It depends on the grant contract and the company's purchase agreement.

  • +1 Yes, now that we know they were employee options, and not purchased exchange traded ones, you nailed it. – JTP - Apologise to Monica Mar 9 '14 at 20:32

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