Simmons Cleared to Buy 25% of Lockheed

Texas billionaire Harold C. Simmons received permission Thursday from the Federal Trade Commission to buy up to 25% of Lockheed stock, and a large block of the aerospace giant’s shares changed hands with Simmons as the rumored buyer.

Simmons, who already owns nearly 11% of Lockheed, has said in SEC filings that he might seek control of the Calabasas firm, and late last month he requested approval to increase his stake above 15%. But some analysts continue to doubt that Simmons could pull off a hostile takeover of Lockheed.

Lockheed spokesman Robert Slayman said the company was notified Thursday by the FTC that Valhi, Simmons’ Dallas-based holding company, had been cleared to acquire 25% of Lockheed under the Hart-Scott-Rodino Antitrust Improvements Act. The FTC must approve major share purchases of U.S. firms under the law, which allows regulators to look for antitrust violations.

Separately, Batterymarch Financial, a Boston-based investment firm, sold nearly 3.8 million Lockheed shares at $39.25 each. The name of the buyer or buyers was not revealed, but speculation on Wall Street leaned heavily toward Simmons, who has bought into several firms in the last year but has yet to launch any takeover attempt.

Valhi declined to comment on Lockheed, and a spokesman for Simmons did not return telephone calls. Batterymarch officials could not be reached. Slayman said Lockheed executives do not know who bought the stock.

Even though Simmons has made no formal attempt to bid for Lockheed, the company has taken some defensive measures, including adopting a poison pill plan and an employee stock ownership program.

“The company has adopted the ‘Just Say No’ defense,” said one aerospace analyst. “I think they’re at a point now where they can almost call his bluff.”

“His strategy may be to put Lockheed into play . . . (but) it’s difficult to see who would be interested other than Mr. Simmons in acquiring Lockheed at this time,” said Lawrence M. Harris, an analyst with the Bateman Eichler, Hill Richards brokerage firm in Los Angeles.

Lockheed’s stock rose 37.5 cents Thursday to close at $39.375 on the New York Stock Exchange. The stock was the second most actively traded issue, with 4.35 million shares changing hands.