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Record $25B RJR Nabisco buyout
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Canadian real estate developer Robert Campeau finalized a $6.58 billion hostile takeover of Federated Department Stores after a fierce bidding war with R.H. Macy & Co., forcing asset sales including Brooks Brothers and Bullock's. The deal creates a top-10 U.S. retailer but leaves Campeau with massive debt and a significantly downsized portfolio, signaling caution for highly leveraged acquisitions in the retail sector.
Philip Morris has agreed to acquire Kraft for $13.1 billion, creating the world's largest consumer goods producer and enhancing its global food market position. The all-cash deal, which values Kraft at $106 per share, positions the combined entity to compete with major European rivals like Unilever and Nestle, with significant implications for market share in U.S. supermarkets.
British conglomerate Grand Metropolitan launched a $5.3 billion all-cash tender offer for U.S. food company Pillsbury, which rejected the unsolicited bid and filed lawsuits in 13 states citing liquor ownership laws. Pillsbury's board urged shareholders to wait for its evaluation, while S&P placed the target's debt on CreditWatch, warning of reduced creditor protection if the takeover succeeds.