On October 1988, Tabacco risks were as heightened as ever and RJR stock traded at a tobacco multiple even though more than half of the company’s profits were derived from their CPG business. This book tracks one of the most interesting deals of this period: The $25B bidding war for the CPG/tobacco conglomerate: RJR Nabisco. 0 Cupon bonds, PIK bonds, etc.) the number of deals grew rapidly while the opportunity set kept shirking as more and more money poured in to this “new” asset class. With leverage mostly in the form of junk bonds and other esoteric securities (i.e. Firms like: KKR, Shearson Lehman, Salomon Brothers, First Boston, Wasserstein Perella & Co., Forstmann Little and Shearson Lehman Hutton were some of the key players in the space.įaced with this scrutiny, corporate executives found themselves under immense pressure to lift their stock prices, or bear the target on their back. Read this book if you are interested in gaining an insight look at how “fast money” junk bonds and activism shook up corporate boards and reshaped corporate governance conflicts in the 80’s.Īt the time, LBOs were running hot with shops ready to buy any and all under-performing businesses, or, -in some instances- strong business depressed stock prices.
0 Comments
Leave a Reply. |