Palliser Capital has advised Capricorn Energy to quit its proposed merger with Tullow Oil, Reuters reported.

It described the deal as “one-sided” and short of “meaningful strategic rationale”. Palliser said that “the Proposed Merger appears to us to be a poorly disguised nil-premium takeover of Capricorn by Tullow.”

“We firmly believe that Capricorn’s standalone value is at least 330 pence per share – representing a 50% upside to the current share price and implying that the Proposed Merger represents a value give-away of over $500 million,” it added.

The company explained that this deal would negatively affect Capricorn’s ESG profile by increasing its oil-gas output ratio.