Icahn Again Attempts Split of RJR Nabisco

Financier Carl Icahn on Tuesday reopened his long-running battle to break up RJR Nabisco Holdings Corp. into separate food and tobacco businesses with a threat to mount another shareholder vote at the next annual meeting.

Rebuffed in two earlier attempts to force a break-up of the huge conglomerate, industry analysts said Icahn might have a better chance this time around.

“Shareholders have lost total confidence in management because the stock has under-performed the S&P; 500 [stock index] by 45%,” said Gary Black, an analyst at Sanford C. Bernstein.

In a filing with the Securities and Exchange Commission, Icahn and a group of investors said they owned more than 5.6% of RJR Nabisco and might mount a proxy fight if the Nabisco arm was not sold off before the next annual meeting scheduled for May 12.

In New York, an RJR spokeswoman said the company was continuing to work toward separating the food and tobacco operations. She said Chief Executive Steven Goldstone had recently spoken to Icahn about a possible split.

RJR Nabisco shareholders in 1996 rejected an alternative slate of directors proposed by Icahn and in 1997 voted down his proposal to spin off the food business immediately.

Absent from Tuesday’s filing was any mention of Bennett LeBow, Icahn’s previous ally in jousting with RJR. LeBow is chairman and chief executive of Brooke Group Ltd., which owns cigarette maker Liggett Group.

Although tobacco stocks have come under pressure in recent years because of increasing evidence of smoking-related health problems, they have recovered somewhat in the wake of a $206-billion settlement of state lawsuits.

RJR Nabisco shares rose $1.75 to close at $30 on the New York Stock Exchange. Icahn’s filing came just ahead of the market close, and he could not immediately be reached for comment.