CalPERS Opposes Plan for Lorillard Stock
CalPERS, the state public employee retirement system, said it is joining Loews Corp. shareholders opposed to a plan under which the company will issue shares tied to the value of its Lorillard Tobacco unit.
The largest U.S. pension fund said on its Web site that it sees such tracking stocks as generally inferior to spinoffs, adding that Loews hadn’t specified its reasons for wanting to issue the stock rather than spin off the maker of Newport, True and other cigarettes to shareholders.
CalPERS, which owns 684,059 of Loews’ 191 million shares outstanding, is the latest investor in the New York-based company controlled by Laurence Tisch to oppose the plan.
Loews (ticker symbol: LTR) views the tracking stock as the best way to boost the value of the Lorillard unit, a profitable business despite tobacco litigation.
Loews shares climbed 55 cents to $55.38 Thursday.
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