By Dan Wilchins
NEW YORK (Reuters) - Activist investor Relational Investors Llc plans to press business software maker CA Inc. CA.N to speed the progress of its turnaround, Relational Principal Ralph Whitworth said on Thursday.
Whitworth said the company's shares may be undervalued by 30 percent, and he wants CA -- which changed its name from Computer Associates International Inc. in early February -- to disclose more about its strategy for spending cash and financing itself.
"We've been patient, but we're disappointed with CA's progress," Whitworth told the Reuters Banking Summit in New York.
The $6.5 billion fund owns about 4.5 percent of CA, having bought into the company in mid-2004.
CA's shares rose as much as 1.6 percent after the news before closing up 1.1 percent at $27.50, and options volume increased as investors prepared for greater uncertainty in the company's share price.
The cost of protecting CA's debt against default in the derivatives market was unchanged at about 55 basis points, or $55,000 for every $10 million of principal protected.
In the options market, some 5,800 CA contracts traded on Thursday, or seven times the average volume.
A CA spokesman declined to comment. Continued...
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