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[[F. Ross Johnson]] was the President and [[CEO]] of RJR Nabisco at the time of the leveraged buyout and [[Henry Kravis]] was a general partner at Kohlberg Kravis Roberts & Co. The [[leveraged buyout]] was in the amount of $25 billion, and the battle for control took place between October and November 1988.
Although KKR eventually took control of RJR Nabisco, RJR management and [[Shearson Lehman Hutton]] had originally announced that they would take RJR Nabisco private at $75 per share. A fierce series of negotiations and proposals ensued which involved nearly all of the major private equity players of the day, including [[Morgan Stanley]], [[Goldman Sachs]], [[Salomon Brothers]], [[First Boston]], [[Wasserstein & Perella Co.]], [[Forstmann Little]], [[Shearson Lehman Hutton]] and [[Merrill Lynch]]. Once put in play by [[Shearson Lehman Hutton]] and RJR management, almost every major Wall Street firm involved in M&A launched frenzied, literal last-minute bids in a fog of incomplete or misleading information.
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.
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