CA cowers under billionaire's bid

Power struggle gets scarier...

The battle for control of IT giant Computer Associates intensified yesterday as investor consultancy Institutional Shareholder Services (ISS) became the second agency in a week to back Texan billionaire Sam Wyly's bid for the firm. ISS, which advises institutional investors on take-over proposals, said it had changed its mind on the issue in the light of revisions to the bid. Last week Wyly changed the terms of his bid for CA, saying that he no longer sought to take direct control himself, and would simply install four members from his investment vehicle Ranger, replacing existing chairman Charles Wang and three other from the ten-man board. In a statement it said the altered bid addresses all of its concerns, including the need to give CA a clean break from its past, and Charles Wang particularly. In a statement CA accused Wyly of trying to gain control of CA without offering anything to shareholders. Sanjay Kumar, CEO of CA, also added to the statement saying it will create a divided board, despite the fact Wyly's revised bid will leave Kumar still in executive control of the firm.