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Icahn Nominates Rival Board for RJR Nabisco in Spinoff Bid

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From Associated Press

Financier Carl Icahn is banging on RJR Nabisco’s door once again, running a rival slate for the tobacco company’s board and pushing for a quick spinoff of its Nabisco food interests.

The list of nominees is headed by Thomas Rattigan, onetime chairman of G. Heileman Brewing Co. Icahn, who has 7.3% of RJR Nabisco’s stock and is the largest single shareholder, is not among the nominees.

RJR called Icahn a corporate raider who “has hired a slate of people to be nominees.” The company noted that none have backgrounds in tobacco.

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The new slate of candidates was submitted on the eve of the deadline for nominations in the election at the company’s next annual meeting in April.

In trading on the New York Stock Exchange, RJR shares edged up 25 cents a share to $29.25.

Roy Burry, who follows RJR for Oppenheimer & Co., said Icahn’s challenge to the RJR board is a plus for the stock either way.

“If he wins, RJR shareholders get a spinoff of Nabisco. If he loses, he has highlighted the value of the spinoff anyway,” Burry said.

In announcing the slate, Icahn criticized RJR Chairman and Chief Executive Steven F. Goldstone for refusing to proceed with an immediate spinoff of the 80% interest RJR owns in Nabisco Holdings Corp. Goldstone has said the timing isn’t right because of the likelihood it would be held up by legal challenges.

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