Stockholder Action Completes Nabisco, Kohlberg Merger

Stockholders of RJR Nabisco Inc. formally approved a merger with Kohlberg Kravis Roberts & Co. today, completing the investment firm’s $24.53 billion takeover of the giant food and tobacco company.

The takeover is effective Friday when trading of RJR stock will be halted on the New York Stock Exchange. Shareholders who tendered their stock to Kohlberg Kravis will receive cash and securities valued at $109 per share.

Louis Gerstner Jr., RJR Nabisco’s new chairman, was questioned by one shareholder about the future of the company’s Del Monte Foods subsidiary, which is thought to be a prime candidate to be sold to help ease the takeover debt.

Gerstner replied, “It’s a terrific company. I know there are rumors and speculation that Del Monte will be sold, but I cannot comment except to say that it is speculation.”

Gerstner declined to comment on reports that the firm will move its corporate headquarters from Atlanta to New York, closer to Gerstner’s home in Connecticut.