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.

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