Carrizo Oil & Gas (CRZO) announced that it was being acquired by Callon Petroleum (CPE) in an all-stock deal that gives Carrizo's common shareholders 46% of the combined company. This article will look at the deal from Carrizo's perspective.
The Deal
Callon's offer to acquire Carrizo involves exchanging 2.05 Callon shares for each share of Carrizo's common stock. This worked out to a value of $13.12 per Carrizo share based on Callon's price prior to the deal announcement. Callon shareholders would end up with around 54% of the combined company, while Carrizo shareholders