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Technology Stocks : Unisys: Computer Solutions and Services Worldwide
UIS 2.780-1.9%3:59 PM EST
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To: TechMkt who wrote (2414)8/12/1999 12:50:00 AM
From: Naveen Kumar  Read Replies (1) of 2818
 
A merger with NCR will strengthen both companies. It makes sense for the following reasons:
1. Economies of scale: both struggling in server market, together they may have critical mass.
2. Complimentary market presence e.g NCR strong in retail, UIS strong in Transportation and Public Sector.
3. Both companies competing heavily in the Financial (Banking) market which is shrinking. This market segment does not justify two large companies.
4. Both companies growing their services business - synergies ?
5. Economies of scale can be derived in the the field maintenance organizations.
6. Opportunity to reduce work-force significantly with some incentive for early retirement. Both companies have aging work-force and could do with an overall reduction in average age of employees (new blood, new enthusiasm).

Just my two cents !
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