LNCO, BRY LINN Energy, LinnCo fall amid concerns over Berry deal
Shares of LINN Energy (LINE) are falling after the company stated in a regulatory filing that the timing of its proposed merger with Berry Petroleum (BRY) is uncertain.
WHAT'S NEW: An SEC inquiry makes the timing of the proposed merger between LINN Energy and Berry uncertain, LINN Energy stated in a regulatory filing last night.
WHAT'S NOTABLE: The SEC is investigating LINN Energy's merger with Berry, Linn Energy announced on July 3. On July 2, LINN Energy and an affiliated company, LinnCo (LNCO), stated that they were the target of an SEC probe, adding that the agency had requested that they preserve certain financial data. LinnCo was spun off from LINN Energy and owns a stake in the latter company.
Yesterday LINN Energy CEO Mark Ellis said that his company remains "very committed" to the Berry transaction. Separately today, Oppenheimer analyst Bernard Cohen downgraded LINN Energy to Underperform from Perform. Cohen wrote that the company's lower than expected second quarter EBTIDA and weak second quarter production, reported yesterday morning, were the main reasons for the downgrade.
However, he added that it does not appear that the Berry Energy deal will proceed under the previously agreed upon terms. TODAY'S PRICE ACTION: In early trading, LINN Energy sank 5.5%, to $23.90, Linnco slid 6% to $25.85, and Berry lost 0.65% to $41.15.
howdie doodie tyme indeed. this is total bs and you know it. your headline is totally fraudulent as "Management" said no such thing. "However, he added that it does not appear that the Berry Energy deal will proceed under the previously agreed upon terms". The "he" is Oppenheimer analyst Bernard Cohen, but you already knew that.
The merger will happen as I speculated earlier today but on slightly different terms and with some changes in LINE/LNCO management. Too many common holders on the institutional side of each of the Companies primarily Fidelity and Blackrock.
Tradedollarnut, you post, "If you were Fidelity - who owns 25% of BRY."
How about a little honesty on your part here? Fidelity may or may not own 25% of BRY, I don't know. But what has that got to do with anyone buying millions of shares of Line/Lnco? BRY is a stand alone company with it's own business and profits.
And with the SEC investigation of Line/Lnco, the BRY merger is definitely on hold. Tradedollarnut, you say that there is 'instant huge profit' here; you are an idiot.