TNAG-2474-FCO40-3604-Business-matters-in-Hong-Kong-acquisition-of-Midland-Bank-by-1992 — Page 35

CONTENTS

Page

5

7

9

Letter from the Chairman of Midland

Letter from the Chairman of HSBC Holdings

Letter from Schroders

1.

Introduction

2.

The Final Offer

10

3.

The Cash Election

10

4.

Details of the new HSBC Holdings shares

11

5.

Details of the new HSBC Holdings bonds

11

6.

Financial effects of acceptance of the Final Offer

12

7.

Terms and conditions of the Final Offer

13

8.

Management and employees

14

9.

Midland share option schemes

14

10.

Taxation

14

11.

Procedure for acceptance

15

12.

Listings and dealings

17

13.

Settlement

18

14.

Further information

19

Definitions

19

Appendices

I

Conditions and further terms of the Final Offer and the Cash Election

20

II

Additional information

25

4