(Reuters) - The California State Teachers' Retirement System (CalSTRS), which currently holds over 5.5 million shares of Wal-Mart Stores, will maintain its exposure to the retail giant hit by bribery allegations "until we find out what happens," CalSTRS' director of corporate governance said on Monday.
Anne Sheehan said in a telephone interview: "Allegations like this are very serious and we expect the company with the board involved and proper board oversight to get to the bottom of these allegations as quickly as possible."
The New York Times reported over the weekend that Wal-Mart de Mexico, which is 69 percent owned by Wal-Mart Stores Inc, had orchestrated a widespread bribery campaign to win market dominance. The investigative article alleged that senior Wal-Mart executives knew about the matter and tried to cover it up.
Wal-Mart said in a statement on Saturday it was "deeply concerned" about the allegations in the Times report and began an investigation into its compliance with the U.S. Foreign Corrupt Practices Act (FCPA) last fall. The company also said it had disclosed the probe to the U.S. Department of Justice and the Securities and Exchange Commission.
Sheehan said: "Allegations of FCPA violations are very serious to any shareholders and we want the company to resolve this...ASAP."
As of March 31, CalSTRS's investment portfolio stood at $152.9 billion in assets.
The California Public Employees' Retirement System (CalPERS), the nation's largest public pension fund, had no comment on the 7.75 million shares it held in Wal-Mart as of the end of March.
CalPERS oversees $231.9 billion in total assets, as of January 31.
Wal-Mart shares closed down 4.7 percent on the New York Stock Exchange at $59.54.
(Reporting By Sam Forgione in New York; Editing by Gary Hill, Jennifer Ablan and Tim Dobbyn)