SEC Probing Lockheed Buys, Simmons Says : Takeovers: The investor says the focus is on the disclosure and timeliness of his filings.

The Securities and Exchange Commission is investigating Texas financier Harold C. Simmons’ purchases of Lockheed shares, it was disclosed Monday, a development that could seriously impede Simmons if he decides to seek control of the aerospace firm.

The investigation, which was disclosed by Simmons in a filing Monday, focuses on the “adequacy of disclosures” in SEC filings and on the “timeliness” of his SEC filings that detailed changes in his Lockheed stock holdings.

The Simmons disclosure states that the SEC has subpoenaed documents and the testimony of unnamed individuals, indicating that the investigation is more than a preliminary review.

When Simmons began accumulating shares of Lockheed early last year, he denied that he had any plan or intention of seeking control of the firm. He characterized his purchases as investments.

But his steady accumulation of shares and the most recent demand to have representation on the Lockheed board have raised increasing doubts among analysts and others that Simmons did not have a plan from the beginning to seek control or take a large minority position in Lockheed stock.

Simmons acknowledged Monday that the SEC investigation is likely to center on whether he intended to mount a takeover battle against Lockheed when he took out his first large position in the stock last year.

An adviser close to Lockheed said the SEC investigation could represent an impediment to Simmons, who last week demanded that the Calabasas-based firm grant him six seats on the board.

“When you see the SEC is investigating, you have to wonder whether there is a flaw in his strategy,” he said. “Whether his supporters pull back depends on the seriousness of the investigation. They wouldn’t want to go further and compound the error.”

Simmons has acquired an 18.9% stake in Lockheed during the past year, an investment of about $510 million. The shares are worth roughly $466 million now.

Simmons characterized the SEC investigation as routine. “I’m primarily the one being investigated,” Simmons told the Associated Press on Monday. He added that his disclosure statements to the SEC have always been “prompt,” and he predicted that “nothing will come” of the SEC investigation.

Simmons also disclosed that the SEC is investigating his trading activities in Georgia Gulf, an Atlanta firm that became the target of a $1.1-billion tender offer by Simmons on Monday.

Aerospace analyst Lawrence Harris at Bateman Eichler, Hill Richards said the SEC probe “puts a cloud” over Simmons’ Lockheed activities.

“It makes further accumulation of shares difficult, if not impossible,” Harris said. “It will be difficult for him to obtain support.”

Separately, Lockheed said Monday that it lost $109 million on sales of $3 billion in the fourth quarter of 1989, contrasted with profits of $104 million on sales of $2.9 billion the year earlier.

For all of 1989, Lockheed posted earnings of $2 million on sales of $9.9 billion, compared to profits of $624 million on sales of $10.4 billion the year earlier.