WL Ross Ups Stake in Exco Resources

Buyout shop WL Ross & Co. has increased its stake in Exco Resources by 2%, and now owns about 12% of the Dallas-based oil and gas producer, Reuters reported Monday. WL Ross is the second largest shareholder in Exco. The company recently said that Ross could not own more than 20% of outstanding shares. Exco has been a takeover target since last fall, when oilman T. Boone Pickens and other investors bid $4.36 billion for it, Reuters wrote.

(Reuters) – Private equity firm WL Ross & Co increased its stake in Exco Resources by about 2 percent, ten days after the oil and gas producer said its second-largest shareholder cannot make an offer to acquire control of the company.

WL Ross holds a 12 percent stake in the Dallas, Texas-based company as of Aug. 4, according to a filing with the U.S. Securities and Exchange Commission.

On July 27, Ross held a 9.8 percent stake in the company, when the company also said Ross cannot own more than 20 percent of the company’s outstanding shares.

Exco has been a takeover target since November 2010, when Chief Executive Douglas Miller, with backing from oilman T. Boone Pickens and other investors, bid about $4.36 billion for it.

EXCO shares closed at $13.86 on Friday on the New York Stock Exchange.

(Reporting by Vaishnavi Bala in Bangalore; Editing by Roshni Menon)