Updated from 5:56 p.m. EST

Relational Investors, a fund with a penchant for activism, says CA's ( CA) turnaround is moving too slowly and will press the company for faster action.

Reuters reported Thursday that Ralph Whitworth, Relational's principal, says the company's shares may be undervalued by 30% and he wants CA to disclose more about its strategy for spending its cash flow and financing itself. "We've been patient, but we're disappointed with CA's progress," he said, at the Reuters Banking Summit in New York.

At the end of 2005, Relational owned 29.3 million shares, or just over 5% of the outstanding shares of CA, making it the software maker's fourth-largest institutional holder.

CA has been struggling to recover from the effects of a $2 billion accounting scandal that led to criminal charges against a number of former executives, and the slowing of the market for mainframe software, the company's core business.

According to the news service, Whitworth said, "We don't want to see what happened to Kodak ( EK) happen to CA." Whitworth was referring to Eastman Kodak's struggles caused by the move to digital photography and the consequent diminution of the film business.

CA's new management has reorganized the company and has emphasized new areas of investment, particularly security.

Shares of CA gained 29 cents, or 1%, to close at $27.50.

Last year, Relational filed a proxy seeking to replace two board members at Sovereign Bancorp ( SOV). A vote on the matter is pending the annual shareholder meeting.