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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14A INFORMATION
PROXY STATEMENT PURSUANT TO SECTION 14(a)
OF THE SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT NO. __)
Filed by the Registrant [ ]
Filed by a Party other than the Registrant |X|
Check the appropriate box:
[ ] Preliminary Proxy Statement
[ ] Confidential, For Use of the Commission Only (as permitted by
Rule 14a-6(e)(2))
[ ] Definitive Proxy Statement
[ ] Definitive Additional Materials
|X| Soliciting Material Pursuant to Rule 14a-12
COMPUTER ASSOCIATES INTERNATIONAL, INC.
(Name of Registrant as Specified in Its Charter)
RANGER GOVERNANCE, LTD.
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
|X| No fee required.
[ ] Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.
(1) Title of each class of securities to which transaction applies:
(2) Aggregate number of securities to which transaction applies:
(3) Per unit price or other underlying value of transaction
computed pursuant to Exchange Act Rule 0-11 (set forth
the amount on which the filing fee is calculated and
state how it was determined):
(4) Proposed maximum aggregate value of transaction:
(5) Total fee paid:
[ ] Fee paid previously with preliminary materials.
[ ] Check box if any part of the fee is offset as provided by
Exchange Act Rule 0-11(a)(2) and identify the filing for which the
offsetting fee was paid previously. Identify the previous filing
by registration statement number, or the Form or Schedule and the
date of its filing.
(1) Amount Previously Paid:
(2) Form, Schedule or Registration Statement No.:
(3) Filing Party:
(4) Date Filed:
Slide presentation materials used by Ranger Governance:
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RANGER GOVERNANCE
Agenda
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o Last Year's Contest
o CA: One Year Later
o Ranger's Interactions with CA
o Ranger's Decision
o Ranger's Motives
o The Ranger Candidates
o The Ranger Strategy & Program
o The Ranger View: Looking Forward
Last Year's Contest
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o Placed Spotlight on Performance
o Battled Against Insider Bloc
o Won 24% of Vote
o Won Promised Concessions
- More Independent Board
- Improved Governance
- More Transparent Accounting
o Press Called Concessions a "Victory" for Ranger
CA One Year Later
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CA has Underperformed in Many Respects $80.00----------------------------
|-------|
Since 8-29-01, stock down 59% to $70.00--|XXXXXXX|-----------------
$13.13 as of July 15, 2002 |XXXXXXX|
$60.00--|XXXXXXX|-----------------
S&P 500 decreased only 20% in |XXXXXXX|
same period $50.00--|XXXXXXX|-----------------
|XXXXXXX|
S&P Systems Software Index $40.00--|XXXXXXX|-----------------
down 19% in same period |XXXXXXX|
$30.00--|XXXXXXX|-----------------
Stock declined from $74.56 on |XXXXXXX|
1-26-00 to $13.13 on 7-15-02, $20.00--|XXXXXXX|-----------------
a decline of 80% |XXXXXXX| |-------|
$10.00--|XXXXXXX|------|XXXXXXX|--
|XXXXXXX| |XXXXXXX|
$0.00----------------------------
$74.56 $13.13
(1-26-00) (7-15-02)
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| |X| CA |
|__________|
Five-Year Total Return
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o Computer Associates -67.7%
o S&P 500 Index +7.7%
o S&P Systems Software Index +25.2%
Total returns for the period 7/18/97 to 7/12/02, calculated from weekly prices.
Source: Bloomberg Professional. Assumes reinvestment of dividends, excepting
the Systems Software Index which assumes no dividends.
One-Year Total Return
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o Computer Associates -61.4%
o S&P 500 Index -22.6%
o S&P Systems Software Index -33.5%
Total returns for the period 7/16/01 to 7/15/02, calculated from daily prices.
Source: Bloomberg Professional. Assumes reinvestment of dividends, excepting
the Systems Software Index which assumes no dividends.
CA's Debt
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o $3.8 Billion as of 3/31/02
o CA's Debt is Highest of S&P Systems Software Index (#2 has less than 16%)
o Debt/Equity Ratio of 83% vs. Index Average (exclusive of CA) of Less Than 4%
o Negative Outlook from S&P in February, 2002
o Downgraded by Moody's to 2 Notches Above "Junk" in March, 2002
Ranger Interactions With CA
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o Onsite Meetings with Sanjay Kumar
o Attended CA Analysts' Meetings
o Ranger Requested Action by the CA Board of Directors
o Board Declined to Dismiss Charles Wang, Sanjay Kumar and Ira Zar
Ranger's Decision
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o Five Ranger Nominees to CA Board
o Not Seeking Control
o Slate Will Bring Ideas, Monitoring and Influence
o Tremendous Effort Required to Overcome Insider Bloc (including Haefner)
Ranger's Motives
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o Economic - Ranger Has 1.5 Million Options
o Personal - Former Employees at Companies bought by CA Should Have the
Chance to Work for a Successful Company
o Societal - Corporate Governance - the Working Union of the CEO,
the Board and the Shareholders - Must be Embraced
That is Ranger's Mission
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The Ranger Candidates
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o A Wealth of Experience in Business, Technology and Finance
o Independent Shareholder Representation
Richard J. Agnich
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Governance Authority and Formerly Senior Vice
President, Secretary and General Counsel for
Texas Instruments
Max D. Hopper
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President of Max D. Hopper Associates, Inc.,
a Company Focusing on Strategic Uses of
Advanced Information Systems; Formerly Senior
Vice President of Information Systems for
American Airlines; Led the Development of the
SABRE Reservations System
Cece Smith
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General Partner of Phillips-Smith-Machens
Venture Partners and the Former Chairman of
the Federal Reserve Bank of Dallas
Ronald J. Robinson
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Formerly President of Texaco's Technology
Division, and a Professor and Department Head
at Texas A&M University
Stephen Perkins
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In the Software Industry for More Than 30
Years, Worked in Sales, Marketing, Product
Development and Corporate Strategies; Served
as President of the Communications Software
Group for Sterling Commerce
The Ranger Strategy
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o Long-term Commitment to Growth and Value
The Ranger Strategy (con't)
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o Different from Last Year:
- Initially ran full slate of 10 nominees
- Proposed restructuring company
- Focused on strategy
The Ranger Strategy (con't)
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o Minority Slate This Year:
- Assembling a strong board
- Present ideas and persuade on merits
- Install controls and mechanisms to
monitor performance and assure accountability
- Make the right things happen for long-term
shareholder value (no Band-Aids)
The Ranger Program
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o We Would Propose:
- Replacing Wang, Kumar and Zar
- Making accounting transparent and credible
- Reviewing the financial reporting systems and having
the CFO accountable to the Audit Committee
The Ranger Program (con't)
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o We Would Propose:
- Reducing the $3.8 Billion of debt
- Redeeming the "poison pill"
The Ranger Program (con't)
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o We Would Propose:
- A long-term market strategy supported by a
strategic technical committee to ensure
coordinated development, acquisition,
interoperability, consolidation and delivery
of products
The Ranger Program (con't)
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o We Would Propose:
- Overhauling and improving customer support
activities through a program of broader
customer input, increased management contact
and director participation in customer
interactions
The Ranger Program (con't)
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o We Would Propose:
- Restructured sales:
o More product specialization
o More responsive "cross-sell" contacts
o Establish single point of contact for customer needs
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THE RANGER VIEW
Looking Forward
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o What Ranger Sees at CA:
- Loss of financial flexibility
- Lack of strategic vision
- Lack of credibility
- Value will suffer
The Choice Is Yours. . .
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o After Looking at the Facts:
- If you believe that the CA management has
done a good job of running your company, then
vote for them
- If, on the other hand, you think that change
is due, vote for Ranger's nominees
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Together, we can make this company great
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Ranger Governance, Ltd. ("Ranger") and certain other persons may be deemed
participants in the solicitation of proxies from the stockholders of
Computer Associates International, Inc. ("Computer Associates") in
connection with Computer Associates' 2002 Annual Meeting of Stockholders.
Information concerning such participants is available in Ranger's revised
preliminary proxy statement on Schedule 14A (the "Revised Preliminary Proxy
Statement") filed by Ranger with the Securities and Exchange Commission
(the "SEC") on July 9, 2002.
STOCKHOLDERS OF COMPUTER ASSOCIATES ARE ADVISED TO READ RANGER'S DEFINITIVE
PROXY STATEMENT (THE "DEFINITIVE PROXY STATEMENT") IN CONNECTION WITH
RANGER'S SOLICITATION OF PROXIES FROM COMPUTER ASSOCIATES STOCKHOLDERS WHEN
IT BECOMES AVAILABLE, BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION.
Stockholders of Computer Associates and other interested parties may
obtain, free of charge, copies of the Revised Preliminary Proxy Statement
and the Definitive Proxy Statement (when available), and any other
documents filed by Ranger with the SEC, at the SEC's Internet website at
www.sec.gov. The Revised Preliminary Proxy Statement and the Definitive
Proxy Statement (when available) and these other documents may also be
obtained free of charge by contacting Morrow & Co., Inc., the firm
assisting Ranger in the solicitation of proxies, toll-free at 1-800-607-0088.
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