(Corrects para 2 to say Callon cut offer to about $723 million from $1.2 billion)
Nov 18 (Reuters) - Hedge fund Paulson & Co, the third-largest shareholder of Callon Petroleum Co, said on Monday it would not oppose the U.S. shale producer's reduced buyout offer for Carrizo Oil & Gas Inc.
Callon on Thursday cut its offer for rival Carrizo to about $723 million from $1.2 billion in July.
(Reporting by Arundhati Sarkar in Bengaluru; Editing by Anil D'Silva)