The way I understand LINE's purchase of Berry Petrolium is that Berry stock holders will be paid in LNCO shates. If this is correct where is this LNCO stock comming from? Is it a new issue and thus dilutive? That would explain the extended drop in PPS. LINCO has been hit much harder than LINE. Maybe I misunderstand the whole thing.
LINE will be bigger by the size of Berry. Line will have the income stream of Berry. LINE can use this new income stream (more or less and after taxes) to pass to LNCO to pay the dividend of the new shares. No Dilution.
Berry needs to generate .725*71.6MM (give or take a few hundred thousand, depending in the price of Linn when the deal closes), plus interest on $1.6B in Berry long term debt, plus principal on the debt. Total around $100MM per quarter.
Check Berry's recent earnings to see if they are doing it as of the first quarter report.