T. Boone Pickens: Difference between revisions

Content deleted Content added

Inline

Revision as of 16:52, 13 April 2006

T. Boone Pickens, Jr. (born May 22, 1928) is an American businessman, Chairman of BP Capital, and well-known takeover artist during the 1980s.

Pickens was born in Holdenville, Oklahoma to a Texas oil and mineral rights leasor. Pickens attended Texas A&M and Oklahoma A&M, joining Sigma Alpha Epsilon fraternity. He graduated from Oklahoma State University with a degree in geology in 1951. After a period as a wildcatter he started working for Phillips Petroleum. Shortly therefter he struck out on his own founding the company that became Mesa Petroleum in 1956.

The takeover years

By 1981, Mesa had grown into one of the largest independent oil companies in the world when Pickens decided that acquiring other oil and gas companies was more profitable than oil exploration and production. He spent much of the decade targeting undervalued companies, making solicited and unsolicited buyout bids and other merger and acquisition activity. This made Pickens a celebrity during the 'deal-making' 80s. His most publicized deals included an attempted buyout of Cities Services, an attempted takeover of Diamond Shamrock, as well as a proxy fight for Gulf Oil.

These as well as other deals placed Pickens at the center of controversy during the 80s. His fame, or notoriety, rose so quickly after the Gulf Oil takeover that he briefly considered running for president in the 1988 elections. He was typically characterised as a corporate raider and greenmailer, as many of his deals were not completed though Pickens and the shareholders he represented received substantial profits through the eventual sale of his stock in the company being taken over. He was a major force in the creation of the United Shareholders Association (USA), which from 1986 to 1993 attempted to influence the governance of large companies. After nearly two years of periodic hearing and debate, in July 1998 the Securities and Exchange Commision voted 4-1 to approve a one-share, one-vote rule, a primary USA mission.

His activism reached even to the local level, as he organized a campaign in the mid-1980s against the local newspaper in Amarillo, Texas, for what he claimed was inaccurate reporting about his deals and Mesa. His attempts to have the newspaper owner, Morris Communications, change editorial policy to treat Pickens more favorably were famously rebuffed. Shortly thereafter, Pickens and Mesa moved to Dallas.

Recent interests

Recently, Pickens has begun speaking out on the issue of Peak Oil, claiming that world oil production is about to enter a period of irrevocable decline. He has called for the construction of more nuclear power plants, the use of natural gas to power the country's transportation systems, and the promotion of alternative energy. Pickens' involvement with the natural gas fueling campaign is long-running. He formed Pickens Fuel Corp. in 1997 and began touting natural gas as the best vehicular fuel alternative because it's a domestic resource that, among many advantages, is clean (NGV vehicles emit up to 95% less pollution than gasoline or diesel vehicles) and reduces foreign oil comsumption. Reincorporated as Clean Energy in 2001, the company now owns and operates natural gas fueling stations from British Columbia to the Mexican border.

Pickens is a financial supporter of President George W. Bush, having contributed heavily to both his Texas and national political campaigns, including a $2 million contribution for the controversial Swift Boat Veterans for Truth attacking Bush's rival, John Kerry. Pickens made a $250,000 contribution for Bush's second inaugural celebration. Another $2.5 million went to the Progress for America advocacy group in the 2004 election cycle alone.

Pickens and employees of his BP Capital LLC donated $7 million to the Hurricane Katrina relief effort. The Chronicle of philanthropy list Pickens as the fifth-largest charitable giver in 2005. He has donated nearly a half a billion dollars to philanthropic causes during his career.

On December 30, 2005, Pickens made a controversial $165 million gift to Oklahoma State University. According to the New York Times, "the money spent less than an hour on Dec. 30 in the account of the university's charity, O.S.U. Cowboy Golf Inc., before it was invested in a hedge fund controlled by Mr. Pickens, BP Capital Management."[1] Pickens earned a massive tax deduction, taking advantage of laws passed in the wake of Hurricane Katrina allowing charitable gifts equal to 100 percent of a taxpayer's adjusted gross income, twice the usual limit of 50 percent. Pickens, who is on the board of the O.S.U. Cowboy Golf, retains the ability to use the funds for buyout deals and leverage operations to benefit his personal interests. The gift is intended to help fund an upgrade of the football stadium and construction of an athletic village, but sparked controversy because OSU planned to use eminent domain to acquire residental property for the projects. [2] The donation comes after a $70 million gift from Pickens to OSU in 2003, which was similarly structured using O.S.U. Cowboy Golf, Inc. [3]

Pickens who lives in Dallas, Texas, is married to Madeleine Pickens and for decades has owned a ranch along the Canadian River in the Texas Panhandle.

External link

@@ Line 1: / Line 1: @@
-'''T. Boone Pickens, Jr.''' (born [[May 22]], [[1928]]) is an [[United States|American]] businessman, Chairman of BP Capital [[Mesa Petroleum]], and well-known [[takeover]] artist during the [[1980s]].
+'''T. Boone Pickens, Jr.''' (born [[May 22]], [[1928]]) is an [[United States|American]] businessman, Chairman of BP Capital, and well-known [[takeover]] artist during the [[1980s]].
-Pickens was born in [[Holdenville, Oklahoma]] to a Texas oil and mineral rights leasor. Pickens attended [[Texas A&M University|Texas A&M]] and [[Oklahoma State University - Stillwater|Oklahoma A&M]], joining [[Sigma Alpha Epsilon]] fraternity. He graduated from [[Oklahoma State University]] with a degree in [[geology]] in 1951. After a period as a [[wildcat]]ter he started working for [[Phillips Petroleum]]. Shortly therefter he struck out on his own founding the company that became Mesa in [[1956]].
+Pickens was born in [[Holdenville, Oklahoma]] to a Texas oil and mineral rights leasor. Pickens attended [[Texas A&M University|Texas A&M]] and [[Oklahoma State University - Stillwater|Oklahoma A&M]], joining [[Sigma Alpha Epsilon]] fraternity. He graduated from [[Oklahoma State University]] with a degree in [[geology]] in 1951. After a period as a [[wildcat]]ter he started working for [[Phillips Petroleum]]. Shortly therefter he struck out on his own founding the company that became Mesa Petroleum in [[1956]].
 ==The takeover years==
@@ Line 7: / Line 7: @@
 By [[1981]], Mesa had grown into one of the largest independent oil companies in the world when Pickens decided that acquiring other oil and gas companies was more profitable than oil exploration and production. He spent much of the decade targeting undervalued companies, making solicited and unsolicited buyout bids and other [[merger and acquisition]] activity. This made Pickens a celebrity during the 'deal-making' 80s. His most publicized deals included an attempted buyout of [[Citgo|Cities Services]], an attempted takeover of [[Diamond Shamrock]], as well as a proxy fight for [[Gulf Oil]].
-These as well as other deals placed Pickens at the center of controversy during the 80s. His fame, or notoriety, rose so quickly after the Gulf Oil takeover that he briefly considered running for president in the 1988 elections. He was typically characterised as a [[corporate raider]] and [[greenmailer]], as many of his deals were not completed though Pickens and the shareholders he represented received substantial profits through the eventual sale of his [[stock]] in the company being taken over. He was a major force in the creation of the United Shareholders Association (USA), which from 1986 to 1993 attempted to influence the governance of large companies. After nearly two years of periodic hearing and debate, in July 1998 the securities and exchange commision voted 4-1 to approve a one-share, one-vote rule, a primary USA mission.
+These as well as other deals placed Pickens at the center of controversy during the 80s. His fame, or notoriety, rose so quickly after the Gulf Oil takeover that he briefly considered running for president in the 1988 elections. He was typically characterised as a [[corporate raider]] and [[greenmailer]], as many of his deals were not completed though Pickens and the shareholders he represented received substantial profits through the eventual sale of his [[stock]] in the company being taken over. He was a major force in the creation of the United Shareholders Association (USA), which from 1986 to 1993 attempted to influence the governance of large companies. After nearly two years of periodic hearing and debate, in July 1998 the Securities and Exchange Commision voted 4-1 to approve a one-share, one-vote rule, a primary USA mission.
 His activism reached even to the local level, as he organized a campaign in the mid-1980s against the local newspaper in Amarillo, Texas, for what he claimed was inaccurate reporting about his deals and Mesa. His attempts to have the newspaper owner, Morris Communications, change editorial policy to treat Pickens more favorably were famously rebuffed. Shortly thereafter, Pickens and Mesa moved to Dallas.
@@ Line 13: / Line 13: @@
 ==Recent interests==
-Recently, Pickens has begun speaking out on the issue of [[Hubbert peak|Peak Oil]], claiming that world oil production is about to enter a period of irrevocable decline. He has called for the construction of more [[nuclear power plants]], the use of [[natural gas]] to power the country's transportation systems, and the promotion of [[alternative energy]]. Pickens' involvementwith the natural gas fueling campaign is long-running. He formed Pickens fuel Corp. in 1997 and began touting natural gas as the best vehicular fuel alternative because it's a domestic resource that, among many advantages, is clean (NGV vehicles emit up to 95% less pollution than gasoline or diesel vehicles)and reduces foreing oil comsumption. Reincorporated as clean energy in 2001, the company now owns and operates natural gas fueling stations from British Columbia to the Mexican border.
+Recently, Pickens has begun speaking out on the issue of [[Hubbert peak|Peak Oil]], claiming that world oil production is about to enter a period of irrevocable decline. He has called for the construction of more [[nuclear power plants]], the use of [[natural gas]] to power the country's transportation systems, and the promotion of [[alternative energy]]. Pickens' involvement with the natural gas fueling campaign is long-running. He formed Pickens Fuel Corp. in 1997 and began touting natural gas as the best vehicular fuel alternative because it's a domestic resource that, among many advantages, is clean (NGV vehicles emit up to 95% less pollution than gasoline or diesel vehicles) and reduces foreign oil comsumption. Reincorporated as Clean Energy in 2001, the company now owns and operates natural gas fueling stations from British Columbia to the Mexican border.
 Pickens is a financial supporter of President George W. Bush, having contributed heavily to both his Texas and national political campaigns, including a $2 million contribution for the controversial [[Swift Vets and POWs for Truth|Swift Boat Veterans for Truth]] attacking Bush's rival, [[John Kerry]]. Pickens made a $250,000 contribution for Bush's second inaugural celebration. Another $2.5 million went to the [[Progress for America]] advocacy group in the 2004 election cycle alone.
-Pickens and employees of his [[BP Capital LLC]] donated $5 million to the [[Hurricane Katrina|Hurricane Katrina relief]] effort. the Chronicle of philanthropy list Pickens as the fifth-largest charitable giver in 2005. he has donated nearly a half a billion dollars to philanthropic causes during his career.
+Pickens and employees of his [[BP Capital LLC]] donated $7 million to the [[Hurricane Katrina|Hurricane Katrina relief]] effort. The Chronicle of philanthropy list Pickens as the fifth-largest charitable giver in 2005. He has donated nearly a half a billion dollars to philanthropic causes during his career.
 On December 30, 2005, Pickens made a controversial $165 million gift to Oklahoma State University. According to the New York Times, "the money spent less than an hour on Dec. 30 in the account of the university's charity, O.S.U. Cowboy Golf Inc., before it was invested in a hedge fund controlled by Mr. Pickens, BP Capital Management."[http://www.nytimes.com/2006/02/24/national/24pickens.html?ex=1140930000&en=da19748d91540a35&ei=5070] Pickens earned a massive tax deduction, taking advantage of laws passed in the wake of Hurricane Katrina allowing charitable gifts equal to 100 percent of a taxpayer's adjusted gross income, twice the usual limit of 50 percent. Pickens, who is on the board of the O.S.U. Cowboy Golf, retains the ability to use the funds for buyout deals and leverage operations to benefit his personal interests. The gift is intended to help fund an upgrade of the football stadium and construction of an athletic village, but sparked controversy because OSU planned to use [[eminent domain]] to acquire residental property for the projects. [http://www.channeloklahoma.com/news/7258470/detail.html?rss=okl&psp=news] The donation comes after a $70 million gift from Pickens to OSU in 2003, which was similarly structured using O.S.U. Cowboy Golf, Inc. [http://www.newsok.com/article/1695522/]