Capricorn investor Palliser calls on management to ditch Tullow deal

LONDON, Aug 9 (Reuters) - Capricorn Energy investor Palliser has called on the firm to ditch a proposed merger with Tullow Oil after describing the deal as "one-sided" and short of "meaningful strategic rationale", a letter seen by Reuters showed.

The letter signed by James Smith, Chief Investment Officer of Palliser Capital (UK), an investment firm with a more than 5% interest in Capricorn, also argued that the deal would damage Capricorn's ESG profile by increasing its oil-gas output ratio.

"The Proposed Merger appears to us to be a poorly disguised nil-premium takeover of Capricorn by Tullow," the letter, dated Aug. 9, said.