CalSTRS and Ohio Public Employees Retirement System, Columbus, today announced their opposition to the merger of Hewlett-Packard Co. and Compaq Computer Corp.
In a press release, the $100 billion California State Teachers Retirement System, Sacramento, said it will vote its 3.3 million shares of HP and 5.3 million shares of Compaq against the merger, primarily because the risk of integrating the two companies appears to be too great and the merger would dilute the value of HPs profitable printer and imaging unit. The $54 billion Ohio PERS concurred, saying the risks outweigh any cost savings, said Dan Sarver, Ohio PERS assistant investment officer, domestic equities. The Ohio plan owns 4.3 million shares of Compaq and 4 million shares of Hewlett-Packard.
Voting in favor of the merger will be the $9.8 billion Illinois State Universities Retirement System, Champaign, and the $5.5 billion Missouri State Employees Retirement System, Jefferson City. John R. Krimmel, CIO at Illinois SURS, said the system has 391,295 shares of HP, all indexed. MOSERS has 405,000 shares of HP, said Gary W. Findlay, executive director, of which 173,000 shares are indexed, 55,000 are enhanced indexed, and the rest are actively managed.