Tullow Oil keeps Capricorn merger plans and €200m cash flow guidance

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Tullow Oil sticks to Capricorn merger plans and €200m cash flow guidance via IrishTimesBiz

Africa-focused Tullow Oil said on Wednesday it would stick to the current form of its all-share merger plan with Capricorn Energy. Photograph: Baz Ratner/ReutersAfrica-focused Tullow Oil said on Wednesday it would stick to the current form of its all-share merger plan with Capricorn Energy, shrugging off criticism from some Capricorn investors who say the deal undervalues the company.

Capricorn's board supports the merger, but the group also said last week it was exploring alternative deals after unnamed parties expressed interest. Capricorn shareholders Madison Avenue, Legal & General IM and Schroders, as well as some other investors, have come out against the merger plan. The deal requires approval from at least 75 per cent of Capricorn shareholders, a threshold that might be in jeopardy if hedge fund investors who have been critical of the deal turn their derivative investments into direct shareholdings.

 

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