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Linn Energy, LLC Message Board

  • brawhman brawhman Jul 3, 2013 1:06 PM Flag

    Before Berry deal ever existed, LINE traded above

    $30 a share, so I am not sure why this thing is getting so slaughtered. Probably just an opportunity for Wall Street, Barron's, SEC to take a few more crumbs before it goes back it will, regardless of the deal or not.

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    • As I do more and more thinking, I had come to several conclusions. I try to see in a big picture why this is happening because like you had said, LINE was above $30 even before BRY was announced.

      My best conclusion is that another big energy/oil company wanted to acquire Berry. This must be a big well known energy/oil company, with many hedge funds as shareholders. Berry looked attractive to them, but somehow they were either spurned by their offer or LINE beat them to the punch or LINE provided a better offer.

      So, in order to bust up this merger, this big energy/oil had their hedge fund shareholders mount an attack on the very deal between LINE and BRY. They did not want the deal to go through. So if the deal ever fails, BRY will be an easier target for them to re-acquire. With LINE no longer an acquirer, this big energy/oil company can re-negotiate for BRY for even better terms for themselves.

      The whole plan was to attack the very structure used for the acquisition : LNCO. Since LNCO's valuation is tied to LINN units, the plan is to mount a vicious short attack to lower the share price of LINE which in effect lower the share price of LNCO. The acquisition is a stock-for-stock transaction where 1.25 LNCO is exchanged for 1 BRY share. If they can dramatically bring down the price of LNCO, the spread ration will be so wide that the terms of the merger either fails to get shareholder approval or had to be re-negotiated. Since LINN is an MLP, it does not operate like a standard corporation. The crux is to arouse as much a suspicion to LINN's accounting so that shareholders lose confidence and dump shares. LINN was an MLP since 2006, and never had problems with accounting or their hedges since, why such a big commotion now??? It is because of the merger. I can see it no other way.

      This might sound conspiratorial or speculative, but after piecing together the pieces, I cannot come to a more logical conclusion.

    • LINE stands strong on its own regardless of deal!

0.180.00(0.00%)May 23 3:59 PMEDT