Publication: Bloomberg News, 25 Jan 2012
The shares gained 9.7 percent to $25.03 at the close in New York, the biggest jump since October 2008. The stock was the second best performer in the Standard & Poor’s 500 Index.
The Islandia, New York-based company said income from continuing operations rose 34 percent after sales grew in its services and enterprise software units. CA, targeted by Taconic Capital Advisors LP after the hedge fund acquired a 5.1 percent stake this month aiming to boost returns, said it will increase its annual dividend to $1 from 20 cents.
CA plans to return $2.5 billion to shareholders by March 31, 2014, by increasing the annual payout and repurchasing $1.5 billion of stock, including about $230 million remaining under its existing authorization.
“We are not done,” Chief Executive Officer Bill McCracken said. “We remain focused on continuing to execute on our strategy and making further operational enhancements including driving new product sales and increasing sales productivity.”
