Tullow Oil (TLW) has a new motto that includes the line “every dollar counts”.
This is something it can share with those pushing back against its merger with Capricorn Energy (CNE). The mechanics of the all-share deal are simple: Tullow provides the production assets and growth prospects, while Capricorn provides its estimated net cash position of $800mn (£673mn) at the end of this year, as per investment bank Stifel. Capricorn’s board said the 47/53 split in the new company was the best it could do.
The All-Share offer equates to 210p a share for Capricorn, below the recent trading level of over 230p.