CalPERS, Sacramento, sent letters to the top 100 shareholders of Tyco International Ltd., asking them to support a resolution that the company reincorporate in Delaware. CalPERS CEO Fred R. Buenrostro Jr. urged shareholders to vote for the nonbinding resolution, which is sponsored by the $600 million American Federation of State, County and Municipal Employees Pension Plan. The companys annual meeting is March 6 in Bermuda.
"Tycos board has agreed to study this critical issue following the meeting, Mr. Buenrostro wrote in the letter. "Shareholders lost a significant level of accountability when Tyco reincorporated from Delaware to Bermuda (in) 1997, it said. The $133 billion California Public Employees Retirement System owns more than 1.4 million shares of Tyco.