Tuesday, 27 September 2016
Last updated 8 hours ago
Jan 9 2008 | 8:32am 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.