Editing Lockheed Corporation (section)

===Attempted leveraged buyout===
In the late 1980s, [[leveraged buyout]] specialist [[Harold Simmons]] conducted a widely publicized but unsuccessful takeover attempt on the Lockheed Corporation, having gradually acquired almost 20 percent of its stock. Lockheed was attractive to Simmons because one of its primary investors was the [[CalPERS|California Public Employees' Retirement System]] (CalPERS), the pension fund of the state of California. At the time, the ''New York Times'' said, "Much of Mr. Simmons's interest in Lockheed is believed to stem from its pension plan, which is over funded by more than $1.4&nbsp;billion. Analysts said he might want to liquidate the plan and pay out the excess funds to shareholders, including himself." Citing the mismanagement by its chairman, [[Daniel M. Tellep]], Simmons stated a wish to replace its board with a slate of his own choosing, since he was the largest investor. His board nominations included former Texas Senator [[John Tower]], the onetime chairman of the [[United States Senate Committee on Armed Services|Armed Services Committee]], and Admiral [[Elmo Zumwalt Jr]]., a former Chief of Naval Operations.<ref>Hayes, Thomas. "Lockheed Fends Off Simmons", ''The New York Times'', March 19, 1991.</ref><ref>Richard W. Stevenson, "Simmons Is Considering Possible Lockheed Bid", ''The New York Times'', February 1990.</ref> Simmons had first begun accumulating Lockheed stock in early 1989 when deep Pentagon cuts to the defense budget had driven down prices of military contractor stocks, and analysts had not believed he would attempt the takeover since he was also at the time pursuing control of [[Georgia Gulf]].<ref>"Simmons to Lift Lockheed Stake." ''The New York Times'', November 22, 1989.</ref>