Market mayhem: Capricorn-NewMed deal nears collapse amid mass board exodus

Capricorn Energy’s under-fire chairman and chief executive and three other board members resigned today, with chief financial officer to join them within days, as internal resistance to activist shareholders’ fight against a business combination with Israeli player NewMed Energy crumbled.

This news marks yet another low point for London-listed Capricorn after a planned marriage with Tullow Oil fell through last year after also being heavily criticised by shareholders.

Responding to this mayhem, NewMed poured cold water on the likelihood of its acquisition of Capricorn moving ahead, saying the probability of closing the transaction has “significantly decreased.”