Paulson No Longer Opposes Callon-Carrizo Deal
Hedge fund Paulson & Co. Inc. is dropping its opposition to U.S. shale producer Callon Petroleum Company’s buyout of rival Permian player Carrizo Oil & Gas.
Paulson, one of Callon’s top shareholders, made the announcement Monday, saying it “no longer opposes the proposed acquisition of Carrizo and will vote its shares in favor of the transaction.”
Late last week, both Callon and Carrizo agreed to changes in their merger agreement, under which Carrizo shareholders will now receive 1.75 shares of Callon common stock for each share of Carrizo common stock they own. Additionally, Callon shareholders’ stake in the combined company will increase to 58 percent while Carrizo shareholders will own about 42 percent.
Paulson had previously said Callon was overpaying for Carrizo and blasted executives’ compensation for the deal.
Paulson said that while it believes that a pure Permian-focused producer would be a more attractive alternative, it respects that different shareholders might have different viewpoints on this matter. As such, although Paulson no longer opposes the transaction, it has reduced its investment position in Callon.
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