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U.S. Treasury Secretary Timothy Geithner testifies before the Senate Finance Committee hearing on the President's FY2013 Budget on Capitol Hill in Washington, February 14, 2012.
U.S. Treasury Secretary Timothy Geithner testifies before the Senate Finance Committee hearing on the President's FY2013 Budget on Capitol Hill in Washington, February 14, 2012.
(YURI GRIPAS/REUTERS)

Warburg Pincus sell-down of MEG stake raises questions with few answers

U.S. private equity firm Warburg Pincus LLC’s move to sell down its stake in MEG Energy Corp. is unexpected given the oil sands developer’s outlook for some improvement in the coming months and suggests repositioning within its own investment portfolio.

The $157-million sale, through a secondary offering, will cut Warburg Pincus’s stake to 17 per cent, down from around 19 per cent, just as the company is nearing startup of a new phase of its Christina Lake oil sands project in Alberta that will almost double output. It will remain MEG’s largest shareholder, however.