CA Shareholder Backs Incumbents in Ranger Proxy Fight

In a letter filed with the Securities and Exchange Commission, Private Capital Management, an investment firm based in Naples, Fla., said it supports CA's current board and management.

"PCM is urging Computer Associates shareholders to oppose the Ranger proxy solicitation and to urge Ranger to call off its planned proxy [contest," said the letter, signed by Gregg Powers, president of PCM. "PCM believes that Ranger's initiation of this proxy contest is without merit, self-serving to the detriment of shareholders, and nothing more than an attempt to confuse, distract, and stagnate the operations and progress made by Computer Associates," the letter said.

PCM controls about 34 million, or nearly 6 percent, of CA's stock.

Wyly's firm, which last summer lost a caustic battle to oust four CA board members, this year is nominating five candidates, according to a proxy statement filed by Ranger with the Securities and Exchange Commission on Thursday.

Ranger cited a decrease in CA's financial performance as the impetus for the proxy bid.

"Ranger has no confidence in the willingness or ability of CA's senior management and current Board of Directors to implement the changes Ranger believes are necessary to improve CA's financial performance and increase stockholder value," said Stephen Perkins, president of Ranger, in a statement.

Walter Haefner, CA's largest shareholder with about a 20 percent stake, voiced his support for current CA management in a letter posted on CA's Web site. Haefner wrote the letter, addressed to Wyly, in April after Ranger urged CA's independent directors to oust the company's top executives, including Chairman Charles Wang and President and CEO Sanjay Kumar.

Shares of CA closed down 36 cents Friday at $15.89.