Unisys nears sale of defense unit to reduce debt

Article Abstract:

Unisys Corp will sell its defense-electronics business. The move is part of an effort to reduce the company's debt. The business that is to be sold, which accounts for $2.1 billion of Unisys's $10 billion in annual revenue, might sell for $700 million. Carlyle Group, an investment bank, is a possible buyer. Unisys's debt was $3.81 at the end of Jun 1991 in spite of ongoing attempts to raise money and cut costs. The company was counting on a big asset sale but no reasonable bids have been submitted because of the recession. Following word that it will sell its defense business, Unisys's stock went up 37.5 cents, closing at $5 on Thursday, Aug 22, 1991.

Security brokers and dealers, Mergers, acquisitions and divestments, Electronics, Unisys Corp., UIS, Carlyle Group L.P., Divestiture, Divestment, Financial Stability

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Moody's mulls downgrading debt of IBM

Article Abstract:

Moody's investors Service Inc may downgrade the rating of $18 billion of IBM's long-term debt. Moody's will consider IBM's business situation, the likelihood that the situation will improve and the possibility that more restructuring might be required. Moody's says its judgement about IBM's credit worthiness will depend on whether it seems that IBM can turn in a stable and predictable performance in spite of ongoing turmoil in the computer industry. If IBM loses its triple-A bond rating, it means that IBM will pay more in interest when the company borrows. It means, too, that IBM will not be able to offer such favorable terms in its leasing business.

Office machines, not elsewhere classified, Periodicals, Evaluation, Economic aspects, International Business Machines Corp., IBM, Securities, Downsizing (Management), Moody's Investor Service, Reorganization, Bond Rating

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