Document Type

Article

Journal Title

Southeast Case Research Journal

Publication Date

2020

Abstract

Since the fall of the price of oil in 2015, there had been significant consolidation among unconventional oil and gas producers in Texas, so initially few were shocked when in July of 2019 directors of Callon Petroleum and Carrizo Oil & Gas announced agreement on a $3.2 billion merger. However, 9.5% of Callon Petroleum was owned by Paulson & Co., a Wall Street hedge fund that strongly disagreed with the deal. Directors had cited numerous advantages, like administrative consolidation, but the hedge fund had alleged the benefits were constructed to justify management bonuses and buy-outs. Furthermore, Paulson & Co. asserted that instead of buying Carrizo, management should be focused on selling Callon. This conflict brought into focus concerns about the value of the deal.

Comments

The definitive article is available: https://secrj-ojs-shsu.tdl.org/secrj/article/view/756.

Additional issues of the Southeast Case Research Journal are available on their website at: https://secrj-ojs-shsu.tdl.org/secrj/issue/archive.

Publisher Statement

This work is licensed under a Creative Commons Attribution - No Derivatives 4.0 International License.

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