Capricorn investor seeks to end Tullow deal, push for new review

Tullow agreed to buy Capricorn in June in an all-stock deal that values the combined company at roughly $1.9bn (€1.86bn), according to data compiled by Bloomberg.

Palliser Chief Investment Officer James Smith said he strongly believes Capricorn is worth at least 330 pence per share, or roughly 50% higher than where its shares traded Monday. Picture: Andrey Rudakov/Bloomberg.

One of the largest shareholders in Capricorn Energy Plc is urging the oil and gas producer to call off its proposed merger with Tullow Oil Plc and instead run a more thorough strategic review that could create better value for investors.

Palliser Capital UK Ltd., which owns more than 5% of Capricorn, argued in a letter to the company’s board Tuesday that the terms of the deal ascribe no value the company’s non-cash assets and amount to a “nil-premium” takeover rather than the merger-of-equals it was billed as.