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UPDATE 1-Paulson gives up opposition to Callon-Carrizo deal

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Nov 18 (Reuters) - Hedge fund Paulson & Co, a top shareholder in Callon Petroleum Co, said on Monday it would not oppose the U.S. shale producer's reduced buyout offer for Carrizo Oil & Gas Inc, while cutting its stake in the company.

Billionaire investor John Paulson's hedge fund, which did not give any details on its latest shareholding, had a 9.5% stake in Callon as of Nov. 6.

Callon on Thursday cut its offer for rival Carrizo to about $723 million from $1.2 billion in July.

Paulson had earlier opposed the deal saying that a 25% premium for the acquisition was too steep and that Callon would lose its position as a Permian pure play by acquiring a company with holdings in the Eagle Ford shale region of South Texas.

Paulson said on Monday while it believes that a pure Permian focused producer would be a more attractive alternative, it respects other shareholders views.

(Reporting by Arundhati Sarkar in Bengaluru; Editing by Anil D'Silva)