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KKR quickly introduced a tender offer to obtain RJR Nabisco for $90 per share—a price that enabled it to proceed without the approval of RJR Nabisco's management. RJR's management team, working with Shearson Lehman Hutton and Salomon Brothers, submitted a bid of $112, a figure they felt certain would enable it to outflank any response by Kravis. KKR's final bid of $109, while a lower dollar figure, was ultimately accepted by the board of directors.
It was accepted because KKR's offer was guaranteed whereas management's lacked a "reset", meaning that the final share price might have been lower than their professed $112 per share. Additionally, many in RJR's board of directors had grown concerned at recent disclosures of Johnson's unprecedented golden parachute deal. ''[[Time
KKR's offer was welcomed by the board, and, to some observers, it appeared that their elevation of the reset issue as a deal-breaker in KKR's favor was little more than an excuse to reject Johnson's higher payout of $112 per share.<ref>{{cite news| url=https://money.cnn.com/magazines/fortune/fortune_archive/1989/04/24/71880/| title=How Ross Johnson Blew the Buyout| author=Bill Saporito| publisher=[[CNN Money]]| date=April 24, 1989| url-status=dead| archive-url=https://web.archive.org/web/20140416205956/http://money.cnn.com/magazines/fortune/fortune_archive/1989/04/24/71880/| archive-date=April 16, 2014}}</ref> Johnson received compensation worth more than $60 million from the buyout, then left in February 1989. In March 1989, [[Louis V. Gerstner]] of [[American Express]] became the new head of RJR Nabisco.<ref name=Bucolic/>
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