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CORRECTED-Paulson drops opposition against Callon-Carrizo deal

(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)