Mesa Sues To Block Hostile Takeover

Mesa Inc. filed a lawsuit Monday in Dallas federal court against an investor group that has bought 9.4 percent of its stock and is pushing for a sale of the company.

The natural gas company said its lawsuit alleges that the group, led by former Mesa president David Batchelder, violated federal securities laws by not disclosing their Mesa holdings earlier.

The group was formed a year ago and includes others not identified in a filing with the Securities and Exchange Commission, Mesa alleged. The company said all members of the group should have filed with the SEC saying they owned at least 5 percent of Mesa shares as early as a year ago.

Mesa, led by Boone Pickens, asked for a preliminary injunction keeping the group from buying more Mesa stock or voting their shares. Pickens owns about 7.5 percent of Mesa’s stock.

The investor group wants Mesa’s board to form a committee of independent directors to explore selling the company, which is burdened with $1.2 billion in debt.