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Calyon Building, former site of the RJR Nabisco headquarters. RJR Nabisco was formed in 1985 by the merger of Nabisco Brands and R. J. Reynolds Tobacco Company. [2] In 1988 RJR Nabisco was purchased by Kohlberg Kravis Roberts & Co. in what was at the time the largest leveraged buyout in history.
The leveraged buyout was in the amount of $25 billion (plus assumed debt), and the battle for control took place in October and November 1988. KKR would eventually prevail in acquiring RJR Nabisco at $109 per share marking a dramatic increase from the original announcement that Shearson Lehman Hutton would take RJR Nabisco private at $75 per share.
Originally, he planned to execute a management-led leveraged buyout with Shearson Lehman Hutton. Events quickly escalated into a takeover contest. He was extensively profiled in the book Barbarians at the Gate: The Fall of RJR Nabisco by Wall Street Journal columnists Bryan Burrough and John Helyar, and in the movie of the same name made for HBO.
One prominent episode in the life of the company was the 1988 bidding war for RJR Nabisco. Forstmann Little offered to acquire RJR Nabisco, but the management (chiefly F. Ross Johnson) instead chose Shearson Lehman Hutton. In the end, the board of directors chose Forstmann Little's arch-rival, Kohlberg Kravis Roberts & Co.
Barbarians at the Gate: The Fall of RJR Nabisco is a 1989 book about the leveraged buyout (LBO) of RJR Nabisco, written by investigative journalists Bryan Burrough and John Helyar. The book is based upon a series of articles written by the authors for The Wall Street Journal. [1]
Under Kravis and Roberts, the firm was responsible for the 1988 leveraged buyout of RJR Nabisco. RJR Nabisco was the largest buyout in history at that time, at $25 billion, and remained the largest buyout for the next 17 years. The deal was chronicled in Barbarians at the Gate: The Fall of RJR Nabisco, and later made into a television movie ...
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Under Kravis and Roberts the firm was responsible for the 1988 leveraged buyout of RJR Nabisco. At a cost of $31.4 billion, [ 14 ] it was then the highest price ever paid for a commercial enterprise. The publicity surrounding the event led to the story being dramatized in the book and film, Barbarians at the Gate . [ 15 ]