The new unsweetened deal terms for the merger between Callon Petroleum Co. and Carrizo Oil & Gas Inc. has won over the transaction’s biggest opponent.
On Nov. 14, Callon lowered the price and premium of its merger with Carrizo, knocking the price of the transaction to $2.7 billion from the original $3.2 billion deal value. As a result, Callon shareholder Paulson & Co. Inc. relented on Nov. 18 that it would no longer oppose the transaction.
However, Paulson & Co. added that it has reduced its investment position in Callon, though didn’t provide any further details.
“While Paulson believes that a pure Permian focused producer would be a more attractive alternative, Paulson respects that different shareholders might have different viewpoints on this matter,” the firm said in a released statement on Nov. 18.