An Ibm Division Goes To Loral
Louis Gerstner has found his first big victim at IBM: the 11,400-employee Federal Systems Div., which IBM announced on Dec. 13 will be sold to Loral for $1.575 billion in cash. The unit is relatively profitable: 1993 operating earnings total $153 million. But IBM says building complex systems for the government doesn't fit its long-term plans. The decision came after a summer-long review to find operations that could be unloaded. But don't look for more $1.5 billion deals, warns CFO Jerome York: The other businesses on IBM's for-sale list together would bring in only $500 million.