Pickens Dodges A Bullet Famed Corporate Raider Avoids Hostile Takeover

There’s no more Boone to pick.

Texas oilman Boone Pickens, who gained the reputation of a corporate raider in the 1980s, successfully repulsed a hostile takeover attempt Thursday of his natural gas company Mesa Inc.

Pickens signed up investor Richard Rainwater to invest $265 million that will help Mesa refinance its debt and satisfy the demands of a group of rebellious shareholders who threatened to take control of the company.

The deal will leave Pickens’ friend of 15 years with securities that can be converted into 63.6 percent of Mesa’s common stock. Rainwater, head of Fort Worth, Texas-based Rainwater Inc., could own 70.6 percent of the company after four years.

The cash infusion beat a Thursday deadline to schedule the annual shareholders’ meeting where the dissident shareholders were expected to try to wrest control of the Mesa board.

“We’re obviously very happy about it. I’m delighted that I have a large shareholder that is a friend that I know well,” said Pickens, who will remain chairman and chief executive.

“Richard and I have talked over a period of four or five years. We discussed the company and recapitalization of the company, but we never had made a deal. About three weeks ago I called him and he said he was ready to talk. Soon thereafter, we put a deal together,” Pickens said.

Rainwater, who owns a stake in the Texas Rangers baseball team and has amassed a fortune he said is more than $1 billion, has been involved in health care, real estate and energy.

As part of the deal, Rainwater and Kenneth A. Hersch, Rainwater Inc.’s chief investment officer, will be named to Mesa’s board.

Rainwater said he will stay out of management in the company on a day-to-day basis and only become involved in major issues.

“Whenever Boone will need or want help from us,” Rainwater said.

Pickens’ struggle to stay in control of his own company had been with investors Dennis R. Washington and Marvin Davis, who tried to force Mesa management to improve the company’s financial position and stock price.