It looks like bry stock is a win win situation. If the deal goes through as originally structured you get linn shares worth more than the current price. If it is dropped the arbitrageurs and others who shorted bry will have to cover and run the price up. Does this make sense.?
The deal was for $2.5 billion as a "floor". Linn will have to renegotiate the share amount to cover that $2.5 billion or cancel the deal. I doubt Linn walks away since Linn needs BRY more than BRY needs Linn.
LNCO at $26.95 is not the true value of the stock. If the SEC gives LInn a clean bill of health, this stock returns to its true value of $37-$42/share. If the SEC doesn't give Linn a clean bill of health, than the merger will probably not go through. Consider that KMP, their auditors, have already passed favorably on Linn's hedging, Wells Fargo and JP Morgan have also passed favorably on Linn's hedging. This is just the SEC doing it due diligence and covering their #$%$ As Warren Buffet says, "the time to buy is when there is blood in the water". LINE/LNCO shares are tanking because everyone want to sell and nobody wants to buy.