MELBOURNE, Aug 2 (Reuters Breakingviews) - Santos (STO.AX) and Oil Search (OSH.AX) dug deep to put a gloss on the deal they unveiled on Monday. The official line is that Oil Search shareholders get an almost 17% premium to the undisturbed share price two weeks ago when news of an initial offer broke. The oil and gas company run by Kevin Gallagher initially dangled only a 12% uplift. The trouble is that Santos’ market value has dropped 17% since a mid-June high. Swap in its closing price on Friday, and the premium falls to some 10%. Go back to the June 24 date of the first approach and Chairman Rick Lee has given the nod to a price 5% lower than the rejected one. Oil Search will own a bit more of the combined company – 38.5% - and its Papua New Guinea liquified natural gas project than previously envisaged. After a series of corporate governance botches , it may be the best deal Lee could get. (By Antony Currie) On Twitter http://twitter.com/breakingviews Capital Calls - More concise insights on global finance: EU stress tests strengthen case for Italy bank M&A read more “Black Widow” pits superhero against giant read more P&G puts stark number on inflation read more The SEC is finally getting serious on Chinese IPOs read more Qatar dials into Africa’s mobile-money scramble read more