Lockheed Stock Rises on Fresh Takeover Talk

Lockheed shares jumped $1 to $48 Friday in heavy trading on the New York Stock Exchange amid renewed rumors suggesting that the company is preparing to fight a takeover attempt.

The Calabasas-based aerospace firm has been the subject of repeated takeover rumors for two years, and late last year it adopted a stock distribution takeover defense.

The rumors Friday centered on reports that the New York investment firm of Goldman, Sachs & Co. had put Lockheed on a list that restricts any comment by Goldman, which is Lockheed’s investment banker. However, that action occurred in December, said Prudential-Bache Securities analyst Paul Nisbet.

As for a rumored restructuring, Nisbet said Lockheed has already substantially restructured, consolidating its aircraft business and selling its shipyard. The only logical operation left to divest is the commercial operations of its Sanders Associates unit, he said.

“The breakup value of this company is close to its value whole,” Nisbet said. “If somebody were to ask me right now, I would say sell.”

In December, billionaire Texas investor Harold C. Simmons, the chairman of Valhi Inc., said he might increase his 0.6% stake in the company. Before Simmons disclosed his holding, Lockheed was trading at about $41 per share.

Nisbet noted that the Salomon Bros. investment firm was rumored Friday to be buying Lockheed shares. One report said the firm was acting on behalf of Simmons.