Unisys Adds Hedgies to Expanded Board

By James Armstrong, Staff Writer

By James Armstrong, Staff Writer

Information technology company Unisys Corp. is expanding its board to accommodate two representatives of hedge fund firm MMI Investments.

The company announced Wednesday it is enlarging its board from 11 to 13 and adding Clay Lifflander and Charles McQuade. Lifflander is president of MMI, and McQuade is the former chairman and chief executive officer of Securities Industry Automation Corp.

"We are firm believers that there is significant, unrealized value in Unisys," Lifflander said in a statement.

MMI has been nudging Unisys to explore strategic alternatives, including a possible sale or spin-off of its government contract business. The company recently retained Goldman Sachs to assist in the process but has said there is no guarantee any deal will be consummated.

There had been speculation MMI might wage a proxy battle at Unisys to win seats on the company's board. As part of the firm's agreement with Unisys, MMI will not nominate any additional candidates at the annual shareholders meeting this year. Before the expansion of the board, four board members had been scheduled to be up for election.

According to its latest filing with the Securities and Exchange Commission, MMI owns more than 32.3 million shares of Unisys, about 9.1 percent of the company. It paid nearly $232 million for its stake.

New York-based MMI is known for its shareholder activism. It recently disclosed a 6.7 percent stake in The Brinks Co. The firm resolved a proxy fight with Brinks in February after the company agreed to spin off its home security division and add one of MMI's nominees to its board.

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Posted on May 22, 2008