LINN Energy, LLC (Nasdaq:LINE), LinnCo, LLC (Nasdaq:LNCO) and Berry Petroleum Company (NYSE:BRY) (the "Companies") announced today that the boards of directors of LINN Energy, LinnCo and Berry have unanimously approved an amended merger agreement. The Companies have executed an amendment to the existing merger agreement to provide for an increase in the exchange ratio (from 1.25 to 1.68 shares of LNCO for) each outstanding share of Berry common stock would receive in the merger and an extension of the end date to January 31, 2014.
I agree. LNCO bid a solid premium on first agreement and now jacked it up further. I know Ellis is committed to deal, but isn't this a big time REACH at this price. There must be a reason behind mere acreage to support this, such as downspacing potential (like what is going on in Bakken) or secondary recovery technique potential that LINE thinks makes the current reserve estimate extremely understated. Lex