Computer Associates CEO says "acquisitions are in our DNA"

A SLIGHTLY CHASTENED looking Sanjay Kumar, CEO and president of Computer Associates, was quizzed about his company's future here in Berlin this afternoon.

After admitting that last week was somewhat painful, Kumar got happier when he talked about what CA is best known for, taking over companies.

He said that CA had made 75 deals in 10 years, and claimed 80% of them were successful. The Computer Sciences deal in 1998 was "bloody" and didn't work, he admitted.

There were likely to be more transactions coming up, he suggested. But CA has changed its ways. "We had a formula driven way which was a PR nightmare but we got the job done, " he said.

While CA has not made an acquisition in "three years, eight months and one day", he said acquisition was "in the company's DNA. It's like an alcholic stopping drinking".

The little difficulties of firing a CFO, problems in accounting four years ago and investigations by the authorities had caused pain, said Kumar. But, he claimed, "Our accounts have been looked at and it's like going to the doctor for physicals" every so often.

He said: "In 1999, the controls we had weren't as strict as they should have been. All the deals were good deals. And today it can't happen. I'm a firm believer in taking decisive action. I'm convinced the long term business prospects of this company are good".