Deals

Activist Reveals Carrizo Stake and Wants Driller to Consider Sale

  • Lion Point builds 6% stake, has held talks with management
  • Fund would like Carrizo to explore potential merger with PDC
Photographer: Sergio Flores/Bloomberg
Lock
This article is for subscribers only.

Activist investor Lion Point Capital has built a position in Carrizo Oil & Gas Inc. and wants the driller to explore a sale or merger with another Permian explorer to gain scale.

The New York-based hedge fund has an economic exposure to about 6 percent of Carrizo and believes the company is undervalued, according to a filingBloomberg Terminal Monday. Lion Point, which was founded by a former Elliott Management Corp. executive, has held discussions with management about its views.