Why Linn Energy and Linn Co Popped

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What: Shares of Linn Energy (NASDAQOTH: LINEQ  ) and Linn Co, LLC (UNKNOWN: LNCO.DL  ) jumped more than 10% as the company cleared a hurdle for its merger with Berry Petroleum (UNKNOWN: BRY.DL2  ) .

So what: Linn announced that the SEC said it has "no further comments" on the company's filed S-4, and Linn announced a November 6 conference call. Of course, this comes a day after the merger deadline passed, but as of right now, it's still on. 

Now what: The question is whether or not Berry's shareholders still see a merger as a good deal, which is extremely questionable at this point. The 1.25 shares of Linn Co they would get are worth $41.50 right now, well below Berry's stock price of $48.80. This may clear a hurdle, but it also comes at a time that Berry has a way out of the merger. 

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Related Tickers

12/31/1969 7:00 PM
BRY.DL2 $0.00 Down +0.00 +0.00%
Berry Petroleum Co… CAPS Rating: ***
LINEQ $0.06 Up +0.00 +2.23%
Linn Energy, LLC CAPS Rating: **
LNCO.DL $0.05 Down +0.00 -3.88%
Linn Co, LLC CAPS Rating: ***