Activist Millbrook Seeks Sale Of Unisys Unit

Jan 9 2008 | 9:32am ET

Activist hedge fund Millbrook Capital Management has begun to agitate for change at Unisys Corp., pushing the information technology company to sell part of its government services business.

In a letter to the company’s board on Monday, Millbrook President Clay Lifflander said that a sale or spinoff of the unit could help triple the company’s share price, calling its U.S. government services division undervalued. Lifflander proposed hiring an independent investment bank to consider alternatives for the unit, including selling it, a tax-free spin-off or an initial public offering. Millbrook, whose MMI Investments fund, is Unisys’ third-largest shareholder with a 9.9% stake, favors the latter.

“In our view, the best alternative would be an initial public offering of 19% of the shares of a subsidiary of Unisys comprising all of its U.S. government services business,” the letter, a copy of which was obtained by Reuters, said.


In Depth

PAAMCO: Will Inflation Deflate the Asset Bubble?

Jan 30 2018 | 9:49pm ET

As the U.S. shifts from monetary stimulus to fiscal stimulus, market pricing should...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Boost Hedge Fund Marketing ROI By Raising Your ROO

Feb 14 2018 | 9:57pm ET

Tasked with delivering returns on client capital, a common dilemma for many alternative...