Caterpillar (CAT) CEO May Move Out of Illinois' Hostile Business Environment

The heavy taxes of Illinois, which were recently increased and signed into law by Democrat Pat Quinn, the governor of the state, may be the last straw for Caterpillar (NYSE:CAT) chairman and CEO Doug Oberhelman, who sent a letter to the governor saying he may pull the company out of the state.

Oberhelman wrote in the letter, "I want to stay here. But as the leader of this business, I have to do what's right for Caterpillar when making decisions about where to invest. The direction that this state is headed in is not favorable to business and I'd like to work with you to change that."

"I have been called, 'cornered' in meetings and 'wined and dined' -- the heat is on," Oberhelman said. "Before, I never really considered living anywhere else and certainly never considered the possibility of Caterpillar relocating. But I have to admit, the policymakers in Springfield seem to make it harder by the day."

Oberhelman said at least four other states have approached him about relocating to their states after the tax increase.

Other concerns in the state is that if Caterpillar is being wooed, how many others are as well.

Caterpillar closed Friday at $109.09, up $0.72, or 0.66 percent.