Linn Raises Offer For Berry Petroleum - Update

(RTTNews) - Linn Energy LLC (LINE) Monday raised its offer to acquire Berry Petroleum Co. (BRY), with the deal now valued at about $4.9 billion including debt. The initial offer agreed in February was $4.3 billion.

Linn cited the strong performance of Berry as the reason behind the raised offer. Berry shares gained over 8 percent on the New York Stock Exchange, following the announcement.

As per the new offer, Linn Energy's affiliate Linn Co (LNCO) increased the exchange ratio for Berry stockholders to 1.68 shares of Linn Co from 1.25 shares. This values Berry at $55.79 per share, compared with the initial offer of $46.24 per share.

The boards of the three companies have approved the amended deal, whose deadline is now extended to January 31.

The deal is structured as a stock-for-stock merger of Berry with LinnCo followed by the acquisition of the Berry assets by Linn Energy.

The deal will create one of the largest independent oil and natural gas companies in North America with pro forma production of more than 1 Bcfe per day and proved reserves of about 6.6 Tcfe.

Linn stock is trading at $31.97, up $1.15 or 3.73%, on a volume of 4.3 million shares on the Nasdaq.

Berry Petroleum is trading at $52.78, up $4.03 or 8.27%, on a volume of 1.8 million shares on the NYSE.