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Linn Energy, LLC Message Board

  • richardleeds richardleeds Oct 12, 2012 3:13 PM Flag

    What is wrong with LINE management????

    Management allowed the investment banks that sold their IPO in LYNCO to bring it to market at $36.50 a share when the units last week were selling at $42.

    This 15% dilution of the current investors gave a better deal to Wall Street and the major institutions that got most of the shares. This was all at the cost to existing shareholders.

    The new unit holders do not even have to wait one full quarter to earn a quarter of the dividend or distribution if you want to call it that.

    As a large unit holder in Linn I am really #$%$ off at management for being asleep at the wheel in terms of protecting existing investors. I have never seen a share offering at this kind of discount. No existing investor in Linn Energy ever received that kind of discount if they purchased shares at one of Linn's offerings.

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    • I am really uspset as a very large shareholder in Linn,
      that management would allow this kind of discount.

      It should have been priced no lower than $38.
      The extra $1.50 discount is an "externality" that
      I trusted Linn's management would have guarded
      against since they are the largest upstream MLP.

      Most of the blame would be on RBC if they were in fact
      the lead runner...I am #$%$!

    • While I certainly agree that the pricing is troubling, especially after Linn announced that they expected no more than a 5% discount to Linn's closing PPS on Thurs., we don't know what Linn's options were or if they were obliged to trust (ho, ho) the investment bankers, those exemplars of fair play and sterling protectors of investors' interests. For all we know, management could be infuriated at the pricing but helpless to do anything about it. I don't know. But I can't imagine Linn willingly surrendering $45 million to fatten investment bankers' wallets.

      • 1 Reply to ronharv
      • The initial public offering price was negotiated between the representatives and us. LinnCo’s only assets, both immediately after this offering and in the future, will be LINN units, which we will own on a one-for-one basis for each of our shares outstanding, and cash reserves for future tax obligations. Given the nature of our business and assets, we expected that the initial offering price of our shares would be within 5% of the last reported sales price of LINN units on the NASDAQ Global Select Market prior to the determination of the offering price. LINN units are listed on the NASDAQ Global Select Market under the symbol “LINE.” The last reported sale price of LINN units on NASDAQ on October 11, 2012 was $40.01 per unit.

    • Hint: LNCO is not the same as LINE. No reason they will have identical prices.

      • 1 Reply to lizahuang54321
      • Yep. Forget that every LNCO share is nothing but one LINE unit.

        This is another permutation of Ron^3's it is all a clever deception to protect the unit value.

        RLP does don't care as he made thousands. Let us little people pick up the nickles.

        Instead of disusing the real dilution caused by an excessively large discount to move the $billion+ we have more occult investment theory.

        The whole troop which seems greatly reduced with limits on voting can then apply Rights of Man 'morality' and proclaim rationality!

        Now that was good entertainment!

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