Ranger Alters Strategy for Computer Associates

Financier Sam Wyly’s Ranger Governance Ltd. has scaled back its strategy for taking over software company Computer Associates International Inc. amid strong opposition.

Ranger said it would nominate a minority slate of just four directors and drop Wyly as a candidate in the Aug. 29 shareholder election.

The upstart bidder also said it would seek to remove CA Chairman Charles Wang but wouldn’t challenge the board seat of Chief Executive Sanjay Kumar.

Islandia, N.Y.-based Computer Associates makes software for mainframe computers. The company’s stock was stagnant during the long technology boom, and it was accused of overstating revenue and cash flow for several years.

But Wyly’s proxy bid was damaged when the largest shareholder, Swiss investor Walter Haefner, with about a 21% stake, indicated he would support management. The challenger was staggered again last week when Institutional Shareholder Services sided with management.

CA shares rose 9 cents to close at $33.53 on the New York Stock Exchange.