Underlining Unisys Corp’s unhappy position as a forced seller, it has managed to find a buyer for its Timeplex Inc acquisition, in the shape of Ascom Holding AG of Switzerland, but will get only $207m for the business where it paid shares valued at $325m when it acquired the company back in 1987 (CI No 807). At that time, the networking equipment manufacturer was doing annual sales of $147m. Unisys hopes to see completion by August 31, but it seems that most of the cash raised will not be able to go towards its debt-reduction programme: that looks like being derailed by a massive settlement of fraud charges inherited that were brought against the former Sperry Corp by the US Department of Defense. The company has agreed to plead guilty to fraud and other felony charges involving using improper means to win defence contracts and pay a biggest ever fine, forecast by the Wall Street Journal to be as high as $190m. Unisys is desperately trying to cut its debt $600m to $800m this year but had set aside only a $60m reserve against the cost of the settlement.
