Some minor comments:

+  - This option affects the file name automake uses for object files.
+
+    Enabling the option shortens the file name such that the prefix
+    derived (after canonicalization) from the path is not included. For
+    instance, it is always foo-foo.o regardless of the path leading to the
+    source file.
+
+    It does not change the directory where these object files will be placed.
+    Thus, it is recommended to combine this option with subdir-objects.
+
+  - Please read the corresponding manual entry for an extensive description.
Please make the NEWS item a bit shorter. No need for the last sentence, for 
example.

+               if (option 'object-shortname') {
Please use the same style for indenting that the code already uses, with the { 
on the next line and indented by two columns.
+                       # If object-shortname is enabled the object's filename 
shall not contain the parts
Please keep everything within 80 columns.

+If this option is specified, then object names constructed by automake are
Capitalize "automake" when used this way.

+therefore ommitting the canonicalized path (@pxref{Canonicalization}). The
misspelled "omitting". Two spaces after sentence-ending periods.

+effect is particularly visible if you use Makefile fragment inclusion feature
@file{Makefile}

+foo}. However, it also works flawlessly if a Makefile fragment is
Omit "flawlessly".

+This is best combined with @option{subdir-objects} because it file name
+conflicts become more likely.
Can't parse this.

+The rationale for this option is to allow a setup where there is a top-level
+@file{Makefile.am} which includes fragments from subdirectories, which also
+generate a Makefile.
Is one Makefile being generated, or many? It's not clear from the sentence.


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