Illinois State Board of Investment, Chicago, and Los Angeles County Employees Retirement Association, Pasadena, Calif., will oppose the proposed merger of WellPoint Health Networks Inc. and Anthem Inc., citing excessive pay packages for WellPoint executives. Information on the number of shares the $10.3 billion Illinois State fund and the $26.4 billion Los Angeles County fund own in the two companies wasn't immediately available.
Also, Maine State Treasurer Dale McCormick, a trustee of the $7 billion Maine State Retirement System, Augusta, said she has asked State Street Global Advisors and Barclays Global Investors, which run the index funds through which the state is invested in WellPoint and Anthem, to vote against the merger.
Michael Fitzgerald, Iowa state treasurer, said he will recommend the $15.8 billion Iowa Public Employees Retirement System and $220 million Iowa Peace Officers Retirement System, both of Des Moines, oppose the merger.
The $600 million AFSCME Employee Pension Trust of the American Federation of State County and Municipal Employees, Washington, will also vote against the merger. The $160.9 billion California Public Employees' Retirement System, Sacramento, already announced its opposition.
ISS recommends that its clients support the merger.
Company shareholders will vote on the merger June 28.