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UNISYS WITHDRAWS PARAMAX INITIAL PUBLIC OFFERING

       UNISYS WITHDRAWS PARAMAX INITIAL PUBLIC OFFERING
    BLUE BELL, Pa., Nov. 22 /PRNewswire/ -- Unisys Corporation (NYSE: UIS) said today that it will not proceed with the proposed public offering for Paramax Incorporated, its defense unit, because of unsettled financial market conditions and market uncertainty about future Department of Defense budget levels and spending.
    A registration statement was filed with the SEC on Sept. 27 covering 20 million shares to be offered at a price range anticipated to be between $22 to $25 through an underwriting group led by Lehman Brothers and co-managed by The First Boston Corporation and Lazard Freres.
    Unisys Chairman and Chief Executive Officer James A. Unruh said, "Our defense business is profitable with positive cash flow, well- positioned in the electronics and systems integration part of the industry and a well-managed company.  A sale in a weak market at  fire sale' prices would not serve the best interests of the company and its stakeholders."
    Unruh said the continuing public debate about defense spending has increased in intensity since the U.S. Government announced a sweeping initiative to reduce arms on the day the offering was filed.  "It will take time before a clear picture emerges and the defense industry can adjust to the new conditions with confidence.  In this environment, coupled with stock market uncertainty, the climate for this public offering was less than ideal.
    "Unisys defense systems unit has had a strategic plan in place for several years to deal with a changing defense industry environment and will continue to aggressively execute it," Unruh said.  "President Fred Jenny, his experienced management team and a dedicated workforce have done an excellent job adapting to change.  They have succeeded in the face of considerable challenges.  We are confident that they will continue to perform for their customers and for Unisys."
    Unruh said Unisys has made significant progress in implementing its turnaround program in 1991.  "We remain positioned financially to complete our restructuring program announced in July and we expect to return to profitability in the fourth quarter," Unruh said.
    /delval/
    -0-                        11/22/91
    /CONTACT:  J. Peter Hynes of Unisys, 215-986-6948/
    (UIS) CO:  Unisys Corporation; Paramax Incorporated ST:  Pennsylvania, Virginia IN:  CPR SU: MP -- PH001 -- 6243 11/22/91 08:56 EST
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Publication:PR Newswire
Date:Nov 22, 1991
Words:373
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