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Berry Petroleum Company, LLC Message Board

  • imatwatch imatwatch Sep 22, 2013 10:46 PM Flag

    why take Linn deal

    assuming sec clears with little too doo, then bry adds, say 40c to distribution.. line shorts will take in in the gut and most likely linn returns to a minimum of 36 bucks just by the short squeeze and don't the institution holders know it!!! PLUS a fat return and divy

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    • the deal is as good as done. The big institutional holders can do the math... If they own BRY & vote no all hell will break loose

    • key words : assuming, most likely, institutional holder know it

      I trust Nostadamus more than any LINN holders hoping to make a quick buck off BRY holder's expense.

      Get this in your head : At the current prices (not some Ouija board guessing), the 1.25 swap ratio will NOT work. Either LINN readjust the ratio to at least parity or no BRY holder in their right minds will vote for the deal.

      • 2 Replies to the_nerdy_guy
      • question for the_nerdy_guy - today LNCO is around $30, and major BRY shareholders know it will improve with a yes vote on merger, but even at 1.25x the current $30 price each BRY shareholder gets $37.50 of base value, then on top of that they get $3 per year in distributions - how much value do you assign to 10 years of those distributions?

      • from another poster hits the nail right on

        Linn Energy offered 1.25 shares which will carry a dividend of close to $4 per share per year. Why would they offer more. That is a hell of good dividend for each share of BRY. Furthermore as I mentioned a bank just loaned Linn Energy $500 million last week for 3.2% interest. That says a great deal about the strength of the Linn balance sheet. Why would they offer more to BRY shareholders when BRY and Linn have in house appraisals that show a share of Linn is worth $30-50 dollars.
        Linn and BRY have 20 years of energy in the ground. BRY predominantly in oil and Linn in natural gas liquids and natural gas. The prices of this energy are only going to go up over the next 20 years. As a combined company this will be a monster. Separate from each other and they are just average producers that no one else would probably acquire in my opinion. Otherwise, with all the oil and gas acquisitions over the last few years they would have already been merged. IMO. Without the merger I think each company will fall about 10-20%. . partial from another poster hope that explains it to you