Simmons Cuts His Lockheed Stake to 4.2%

Harold C. Simmons, the corporate raider who disclosed only Monday that he held a 5.3% stake in Lockheed, sold off 200,000 shares Tuesday, cutting his ownership to 4.2%.

Simmons had reacted negatively to a restructuring announced by the big aerospace firm Tuesday, in which the firm created an employee stock ownership plan and accelerated plans to sell certain assets.

In an interview Tuesday after the New York Stock Exchange closed, Simmons said: “I am considering selling some or all of my stock.”

Indeed. At the time of the interview, Simmons had apparently already sold two blocks of 100,000 shares each, one for $48.75 a share and the other for $48.87 a share for a total of $9.8 million, according to a filing with the Securities and Exchange Commission.

When Simmons disclosed his 5.3% holding in Lockheed, some analysts expected that it might prompt a restructuring.

Lockheed Chairman Daniel M. Tellep said Tuesday that the company already had that idea and had been planning the overhaul since last fall. According to Lockheed, it was a coincidence that Simmons’ disclosure was made the day before Lockheed planned to announce its restructuring, which will result in employees obtaining a 17% share of the company.

“If they’re giving stock to the employees, that’s obviously not good for the public shareholders,” Simmons said Tuesday.

Since his holdings have fallen below the 5% mark, Simmons is no longer required to disclose his actions with regard to Lockheed, headquartered in Calabasas.

Simmons’ disclosure of his Lockheed holdings on Monday sent the share price up $3, but the stock dropped back $2 on Monday. It closed Wednesday at $46.675, down another $1.125.