Florida State Board of Administration, Tallahassee, identified Siemens for possible divestment in connection with business activity in Iran, according to a report by the $124 billion board.
The board holds $47 million of Siemens stock, all with external managers in active and indexed portfolios, Michael P. McCauley, senior corporate governance officer, said in a statement.
Siemens was placed on the FSBA's “continued examination” list for possible divestment. The board's researchers on Iranian business activity — RiskMetrics Group, KLD Research & Analytics and the American Israel Public Affairs Committee — disagree on their categorization of Siemens, the report said. Only KLD “flagged the company's operations in Iran,” Mr. McCauley's statement said.
“The SBA will send the company a letter requesting more detailed information about their business operations in Iran,” the statement said. If Siemens were placed on the list of prohibited investments, it would be subject to divestment within 12 months.
The FSBA has no investment restrictions on Siemens stock now, Mr. McCauley said in the statement.
Under a 2007 state statute, the $95.3 billion Florida Retirement System, which the SBA oversees, is prohibited from investing in companies with certain business operations in Sudan and Iran involving the petroleum or other energy sector or military support activities. Investments in U.S. companies aren't affected by the law.
Siemens’ business activities in Iran are civilian in character in power plant, transportation and medical systems, according to a company statement which also said the company condemns the escalating violence in Iran.