Callon Petroleum Lowers Its Asking Price For Carrizo Oil & Gas
Callon Petroleum agreed to a lower premium in its acquisition of Carrizo Oil & Gas as part of amended deal terms.
Phillips Johnston, an analyst with Capital One Securities Inc., estimates the amended terms lower the total transaction value to $2.7 billion from the original $3.2 billion deal value. (Source: Hart Energy)
In response to shareholder opposition, Callon Petroleum Co. and Carrizo Oil & Gas Inc. on Nov. 14 they unsweetened the terms of the merger between the two Houston-based independents.
Callon's initial proposal offered Carrizo a 25% premium. Under new merger terms, the premium slips into the single digits and the overall transaction value would fall by about half a billion dollars.
Despite clamoring for consolidation for the past year, investors have largely punished stocks of merging companies, with few exceptions. For example, shares of Callon have fallen roughly 30% since the transaction with Carrizo was first announced in July.