If this was a buyout there would be a set price in(dollars) and you know it.Its a merger and Linn Energy not only will start paying a cookie every month but will also take care of BRY.In what way-----assume debt and pay their taxes.Oh and you and everyone else knows WTI will not stay in 3 digits the futures and macro guys know it too.
Berry shopped themselves to several parties well before LInn came into the picture and there were no takers. If the merger doesn't take place it's hard to say where the price of Berry will be wind up but probably many dollars lower and those voting will have to take this into consideration.
That's not the complete picture. Yes, their BRY share is worth $6 more than a LNCO unit * 1.25, so I get your point, but then LNCO unit will potentially earn $3.75 per year in distributions, and regardless of how sustainable we all think that cash flow stream is, it has a present value that you did not address in your "$6 loss" comments. I think the LNCO future distribution stream is why BRY shares are currently priced where they are.
kind of funny situation - I would normally argue that the market says its a good deal hence BRY going up on news deal is progressing which would mean the market says do the deal. Question is why LINE hasn't traveled up more quickly since it appears to be a good deal if it goes through for LINE. Is this because so many IRA's flipped to LNCO creating a short term supply demand gap? At some point the LINE yield has to bring this back into balance - if it doesn't relax, reinvest and enjoy your nice double in 7 years
you keep forgetting a common little tidbit a lot of people know... It's not where it's at, it is where it is going. No more SEC and DCF issues will drive the stock price higher. With the addition of their recent purchase, an increase to the DIV to go along with the price increase is quite possible.