Unisys expands board by 2, retains Goldman, Sachs

Technology services provider Unisys Corp. said today that it has appointed two new directors recommended by a major shareholder, expanding its board to 13 members from 11.

The company also announced that it has been awarded the right to compete for information technology contracts for the Department of Defense and other federal agencies.

The Blue Bell-based company has added Clay B. Lifflander, president of MMI Investments LP, and Charles B. McQuade, retired chairman and chief executive of Securities Industry Automation Corp.

In response to the appointment of directors, MMI Investments has agreed to work cooperatively with the company.

In January, MMI Investments, which is controlled by hedge fund Millbrook Capital Management Inc. in New York, sent a letter to the company's board expressing its frustration with the company's lagging stock price and urging the company to sell or spin-off its U.S. government business.

MMI Investments, which owns a 9.1 percent stake, had said it would consider taking action at the annual shareholder meeting if it did not receive a response.

Unisys later announced plans to hold its annual meeting on July 24 and said the deadline for submission of shareholder proposals and director nominations was June 2. Unisys also said it was exploring ways to enhance shareholder value, under the guidance of investment bank Bear Stearns Cos.

MMI Investments said in a statement that it supported the company's actions.

On Wednesday, Unisys said it recently retained Goldman, Sachs & Co. to assist with its exploration of ways to increase shareholder value.

Shares have fallen 54 percent from a high of $9.70 in July to close Tuesday at $4.45. The stock has traded as low as $3.04 in the last 52 weeks.

Unisys announced the government contract today in a news release.

The Pentagon's Defense Information Systems Agency has hired Unisys for similar contract work. But, Unisys said today in a release, this $12.25 billion multiple award indefinite delivery indefinite quantity contract, called Encore II, would call for work enhancing information sharing.