Tullow - comment

A 5% shareholder in Capricorn has called on Capricorn management to call off the proposed merger with Tullow. The merger is seen as a strategic way for Tullow to access Capricorn’s cash balances (without having to do a rights issue) and for Capricorn to get access to producing and developing oil assets. However, several Capricorn holders are against the deal as they believe Tullow shareholders gain more from any merger.