Business Notes Raiders

Under the banner of Mesa Petroleum, T. Boone Pickens has launched one corporate raid after another and in the process reshaped the American oil industry. He used Mesa as a vehicle to buy huge chunks of such companies as Cities Service, Gulf and Phillips, then sold the stock to other bidders at premium prices. Last week Pickens moved to end the Mesa saga. In December, shareholders will be asked to convert the company from a public corporation into a limited partnership. After that move, Mesa is not expected to make any further takeover attempts.

With the price of petroleum declining, there were simply no more oil fields worth the struggle. Said Pickens: "We had more cash flow than investment opportunities. We want to give the money back to shareholders, and this is the best way to do it." Energy analysts agreed. Said Alan Edgar of the Dallas investment firm of Schneider, Bernet and Hickman: "They'd run out of targets." While Mesa will be out of the raiding business, Pickens may not be. His 9% share of Mesa could be worth $130 million to $150 million when the company is transferred to a limited partnership. That should be ammunition aplenty for a little Pickens foraging.