Unisys, activist investor in talks
The computer-services firm must sell or spin off its government unit, MMI has demanded.
Unisys Corp. said yesterday that it postponed the deadline for director nominations and shareholder proposals for its 2008 annual stockholders' meeting while it addresses concerns brought by a major shareholder.
Unisys said the postponement, until Feb. 19, would facilitate discussions with MMI Investments L.P., the Blue Bell firm's third-largest shareholder, which has demanded that Unisys sell or spin off its profitable U.S. government business, saying the move could triple the stock price.
The original deadline for director nominations was tomorrow, and the original deadline for shareholder proposals was Sunday. A date for Unisys' annual meeting - usually held in April - has not been set, the company said.
MMI, which owns 9.9 percent of Unisys' shares, asked the board in a letter earlier this month for a "meaningful response" by yesterday.
MMI, owned by New York hedge fund Millbrook Capital Management Inc., urged the board to hire an independent investment bank to review strategic alternatives, with a focus on divesting the U.S. government-services business through a sale, tax-free spin-off, or initial public offering.
Unisys, in a statement yesterday, said that, like MMI, its board and management "believe that Unisys shares are substantially undervalued and that the company's current share price does not appropriately reflect the value of the significant improvement achieved in the company's operating performance and profitability."
Unisys said the company "on an ongoing basis" had actively considered "alternatives to enhance shareholder value and to improve the company's performance."
Unisys employs 2,400 in the Philadelphia area, mostly in Blue Bell and Malvern. The computer-services firm reported a third-quarter net loss of $31 million in October.
Unisys shares closed up 6 cents at $3.46 on the New York Stock Exchange.