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Callon 9.5% shareholder Paulson votes against proposed Carrizo deal

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The Paulson & Co. hedge fund says it has voted its 21.6M shares of Callon Petroleum (NYSE:CPE) against the proposed acquisition of Carrizo Oil & Gas (NASDAQ:CRZO), saying CPE’s Q3 results demonstrate the strength of the company’s stand-alone Permian Basin focus.

Paulson notes proxy advisors Institutional Shareholder Services and Glass Lewis recommend that CPE shareholders vote against the deal.

Paulson says the CPE board should focus on cutting G&A costs, which have increased by $12M-plus YTD vs. the first nine months of 2018; SIMOPS mega-pad development on its extensive stand-alone acreage; delivering on generating “true corporate-level” free cash flow organically; and engaging new, independent advisors to pursue a sale of the company.

Source: M A News on Seeking Alpha