Unisys has been called to account by its biggest shareholder, which has demanded it be split into three parts to ensure its long-term survival.
The proposal was submitted to Unisys shortly after it announced it would axe 600 employees with the closing of its mainframe plant in Minnesota.
Greenway Partners LP and affiliates are concerned about their seven-million-share stake in the company and have said they want Unisys to be split into three publicly traded companies consisting of Unisys' information services, support services and computer system businesses.
The proposal stated: 'We believe a true spin-off will unleash, for the benefit of shareholders, the underlying value in Unisys.' But company officials have rejected the proposal as out of hand. Company representative Peter Hynes said: 'Separation of the units would jeopardise the business of all three units. The board believes it is critical to maintain the current relationship among the units.' The job cuts mark the beginning of Unisys' programme to chop its workforce by one fifth by mid 1997. The proposal will be included at the Unisys 23 April annual meeting.
Infrastructure provider says international sales now make up 51 per cent of its revenue
Suzanne Chappell of TMS plans sailing venture after selling Oxfordshire-based TMS to acquisitive Chess
Withdrawal of credit insurance by some providers a 'reflection' of current challenge facing IT sector, according to MD Steve Soper
SMART's UK managing director joins Lenovo to boost SMB business