Even if it is $3.00, i.e. 0.25 per month, that would still be 8.333% at a LINE share price of $36.
The main thing is that the BRY acquisition helps ensure LINE can meet its distribution obligations, which long term, was the whole point of the merger in the first place.
If the deal goes forward as originally proposed, yes to the $35. As to $40, probably not either the increase in the distribution which was originally announced or until after the next earnings report for the newly combined company.
Usually, at that point in the process, the amendments are minor or technical in nature, rather than deal breakers. The apple polishing is done. Time for the harvest. The shorts are running out of BS.
A. Rule as to Use of Form S-4.
1. This Form may be used for registration under the Securities Act of 1933 (“Securities Act”) of securities to be issued (1) in a transaction of the type specified in paragraph (a) of Rule 145 (§230.145 of this chapter); (2) in a merger in which the applicable state law would not require the solicitation of the votes or consents of all of the security holders of the company being acquired; (3) in an exchange offer for securities of the issuer or another entity; (4) in a public reoffering
or resale of any such securities acquired pursuant to this registration statement; or (5) in more than one of the kinds of transaction listed in (1) through (4) registered on one registration statement.
2. If the registrant meets the requirements of and elects to comply with the provisions in any item of this Form or Form F-4 (§239.34 of this chapter) that provides for incorporation by reference of information about the registrant or the company being acquired, the prospectus must be sent to the security holders no later than 20 business days prior to the date on which the meeting of such security holders is held or, if no meeting is held, at least 20 business days prior to either (1) the date of such votes, consents or authorizations, or (2) the date the transaction is consummated or the votes, consents or authorizations may be used to effect the transaction. Attention is directed to Sections 13(e), 14(d) and 14(e) of the Securities Exchange Act of 1934 (“Exchange Act”) the rules and regulations thereunder regarding other time periods in connection with exchange offers and going private transactions.
Typically, the SEC would assist the applying Parties regarding the amendments. In other words, the government officials are suggesting to LINE's securities lawyers what they need to do to win approval of the merger. While not 0%, the chances of the SEC not approving the deal are pretty darn close to 0.
The shorts have had free reign the past few months, but the tide has turned with the positive earnings announcement followed by the end of the SEC inquiry. If you're short and have a profit, better to take it now than lose it. Assuming the Berry merger goes through, the stock could see $35 again in short order (no pun intended).
The government shutdown had something to do with it. Indeed, most federal offices, including most of the SEC (which was deemed non-essential) were shut down for three weeks. Talking to a representative from the EEOC yesterday, they're buried and trying to catch up. I suspect it is no different at the SEC.
Perhaps, it is the short interests in the stock covering to avoid losing profits they've made. Five days to cover at last report.
Here's what Stockconsultant has to say:
Confirmation - Strong bullish 3 day chart pattern with Strong 3 day accumulation.
Confirmation - Strong bullish 1 day moneyflow
Confirmation - CONFIRMED breakout above 28.83, no resistance in area just above.
CONFIRMED breakout above 28.83, no resistance in area just above.
Type: True breakout from double resistance.
To understand who is the holder of record, and thus who retains the voting rights, you just need to follow the shares. Initially, the shares are held by one of the three sources. Whichever source initially held the shares was also the holder of record. When the shares were used in the short sale transaction, the initial source lost its voting rights as it was no longer the holder of record. Even the margin account customer who holds the shares long will lose his or her voting rights in this situation - this is part of the margin account agreement.
The shares are then sold in the market, and the investor who purchases these shares becomes the holder of record for these shares, thus controlling the voting rights. The investor going short does not get the voting rights. When this investor closes his or her short position, the shares are returned to the brokerage firm, and the voting rights return to the initial owner whose shares were used in the short sale.