Billionaire launches fresh bid to topple CA management


Billionaire launches fresh bid to topple CA management

Texas billionaire Sam Wyly has launched a second attack on the top managers of Computer Associates, calling for the resignation of CA co-founder and chairman Charles Wang, president and chief executive officer Sanjay Kumar and chief financial officer Ira Zar, along with directors Alfonse D'Amato, Willem De Vogel and Russell Arzt.

Last summer, CA shareholders voted overwhelmingly to re-elect the board and threw out the list of candidate nominated by Wyly's venture capital firm, Ranger Governance.

A statement on Ranger's Web site gives the reason for Wyly's fresh assault on CA, claiming that CA's top managers had not addressed complaints Wyly had raised in his first proxy contest. The complaints included the poor performance of CA stock.

The statement went on to say that Ranger had no confidence in CA's senior management and board of directors to implement changes that "Ranger believes are necessary to improve Computer Associates' financial performance and increase stockholder value".

A statement on CA's Web site stated that Wyly's latest bid to wage a proxy fight was not in the best interests of shareholders.

"The fact is that CA is delivering on the commitments made last year, and most observers agree CA's business model is working well and delivering sustainable competitive advantage," the statement said.

CA said it reasserted its commitment to its managers in a letter sent to Wyly in April, after he had criticised the management team. It added that it would oppose Wyly's nominees.

The CA general meeting is scheduled for 28 August.

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