As Dominique said, you get more recombinants when intergration by replacement is sought. On the other hand, you could as well transform P. pastoris with the circular form of the plasmid. In this case you would get transformants in which the complete plasmid integrates at specific genomic sites (AOX or HIS genes) via a single-point recombination.
Also, when you perform your transformation with circular DNA you need at least 10 times more DNA (100 ug) than when you use linear DNA (approx. 10 ug), due to the efficiency is lower.