Lockheed Chief, Simmons to Meet for First Time

Lockheed Chairman Daniel M. Tellep said Tuesday that he will meet today for the first time with financier Harold C. Simmons, whose purchase of a 5.3% stake in Lockheed last month preceded a major restructuring by the aerospace giant.

The meeting is scheduled at Lockheed’s Calabasas headquarters and will mainly provide the two with an opportunity to get acquainted, Tellep told reporters after Lockheed’s annual meeting in Woodland Hills. Tellep said his meeting with Simmons was prompted by a brief letter Simmons wrote to Tellep after Lockheed announced its restructuring April 4.

Simmons, a takeover artist who has a house in Santa Barbara, “wanted to stop by for a few minutes,” Tellep said. “There’s been no specific agenda established. It’s to meet each other.”

Tellep, when asked what he planned to tell the Texas billionaire, said only, “I’m looking forward to meeting him and answering any questions he has about the direction and outlook for the corporation.”

Simmons could not be reached for comment.

Lockheed announced its restructuring the day after Simmons disclosed that his Lockheed investment had reached 5.3%. The plan includes, among other things, the creation of an employee stock ownership plan that will own 17% of Lockheed’s stock, the sale of Lockheed’s four information systems subsidiaries and the sale of 225 acres of its property in Burbank.

The company said the changes are intended to help Lockheed concentrate on its core defense, aerospace and electronics operations, and to provide employees with additional incentive to improve productivity.

But the moves also were widely viewed as Lockheed’s bid to erect a strong anti-takeover defense, because Lockheed has long been a rumored takeover target. As for Simmons specifically, Lockheed said the restructuring was not related to his investment.

After Lockheed’s announcement, Simmons promptly sold 200,000 shares to cut his ownership to 4.2% and cited the ESOP as the reason for the sale. But Simmons said he was continuing to study Lockheed’s situation.