Introduction to the RJR Nabisco Takeover
Bryan Burrough and his colleague built this account from over one hundred interviews with every major person involved in the 1988 struggle for RJR Nabisco. They spent dozens of hours talking to key figures like Henry Kravis and Ross Johnson. By interviewing almost everyone present at critical meetings, they reconstructed conversations and events with great detail.
The focus of the story is on a leveraged buyout. A leveraged buyout is a financial process where a company is purchased using massive amounts of borrowed money. Because the effects of such a massive financial change take years to appear, this summary concentrates on the intense period of the takeover itself.
The narrative identifies the main groups involved in this financial struggle. At the center was Ross Johnson and his management team, supported by the investment bank Shearson Lehman Hutton. They faced powerful rivals like Henry Kravis of Kohlberg Kravis Roberts and the leaders of Salomon Brothers.
To maintain fairness during the corporate battle, a special committee of directors and legal experts oversaw the bidding process. Other major banks like Morgan Stanley joined the process to represent different financial interests. This setup created a high-stakes environment where the future of a massive American corporation hung in the balance.
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