The merger is based on the LINNCO stock price back in March. I think it was around $36.50, I still believe the merger will go thru. This SEC thing has been blown way off track the real reason given be the SEC was just to look at the merger, not investigate any hedges. Mainly how to manage an MLP buying a Corp C.
The MLP is not buying a C corp, they are spinning off a structure (or 13% approx) to be taxed as a C corp and to be funded by the distributions of its parent. This way it can issue dividends, not distributions and a 1099 not a K1. The IRS agreed with the concept because it immediately subjects the cash to investors as taxable instruments and the govt gets the money right away. And the govt needs your money to fund all its growing expenses, like the few billion it wants to invest into African energy.
so you think the Berry equity will just say, well the stock is worth 39% less than it used to be but we'll do the thing anyway. Only way the deal happens is if SEC comes out and gives and all clear. We all know how quickly the government works. Deal is cooked and so is this stock