LinnCo's bid for Berry Petroleum under SEC review
The USD2.12 billion takeover bid from LinnCo LLC of Berry Petroleum Co is now the center of an investigation by the US Securities and Exchange Commission. It was scheduled to be completed by October 31 but is expected not to be completed. At this juncture, any party can walk away from the transaction.
LinnCo said in documents filed with the SEC today, said, "There can be no assurances as to whether the parties will agree to extend the end date or that the parties will refrain from exercising their rights to terminate the merger agreement."
The only asset of LinnCo is shares in Linn Energy LLC. It did not return a voicemail seeking comment on the current state of the transaction.
In February, LinnCo had agreed to acquire Berry for the price of USD2.42 billion worth of shares to increase its oil reserves and increase payments to its unitholders. Last July, the SEC had informed the companies it was undertaking a 'non-public inquiry' and sought documentation related to the mentioned transaction as well as hedging strategies and the financial undertakings of Linn and LinnCo.