Callon Wins Over Carrizo Merger’s Biggest Opponent

Paulson & Co. relented that it no longer opposes the merger of Houston-based independents Callon Petroleum and Carrizo Oil & Gas, though the hedge fund also cut its investment in Callon.

Callon Wins Over Carrizo Merger’s Biggest Opponent

Paulson & Co. on Nov. 18 said it will vote its shares in favor of the merger in response to amended terms agreed to by Callon Petroleum and Carrizo Oil & Gas. (Source: Shutterstock.com)

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.

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Emily Patsy

Emily Patsy is the senior managing editor for Hart Energy’s Digital News Group. She's responsible for the daily news flow and also manages the A&D Watch and Energy Pulse weekly newsletters.