Case | HBS Case Collection | April 1991 (Revised July 1991)

RJR Nabisco Board: Guardians of the Gate? (A)

by Jay W. Lorsch

Abstract

Charles Hugel, the chairman of RJR Nabisco, receives a call from RJR Nabisco's CEO, Ross Johnson; Johnson plans to present an LBO plan to the board of directors at the board meeting the following week. The case details Hugel's actions as chairman, and describes the events leading up to the bidding deadline for the company. The special committee of RJR Nabisco's board must decide which of the three groups vying for the company submitted the best bid.

Keywords: Leveraged Buyouts; Situation or Environment; Bids and Bidding; Decision Making; Managerial Roles; Governing and Advisory Boards; Management Teams; Consumer Products Industry; Food and Beverage Industry;

Citation:

Lorsch, Jay W. "RJR Nabisco Board: Guardians of the Gate? (A)." Harvard Business School Case 491-120, April 1991. (Revised July 1991.)