RJR projected to sell intl unit

[Robert Weissman <rob@essential.org>]

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News Summaries for Wednesday, December 23, 1998
   (provided by Advocacy Institute, distributed by Smokescreen)

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RJR Faces Proxy Battle Over Tobacco Spin-Off; May Sell International Unit

Financier Carl Icahn has raised his stake in RJR Nabisco
Holdings Corporation to 5.6 percent, and will seek to elect
directors who support a spin-off of RJR's tobacco unit at the
company's 1999 shareholder meeting in May.  Icahn was
unsuccessful in similar proxy battles in 1995 and 1996.  Current
RJR CEO Steven Goldstone said that the two companies should be
separated, but that the move is not feasible at this time.
Analyst Gary Black commented, "The reason you're seeing the
raiders circle the company is that there's a lot of value and
there's a lot of creative things management isn't doing."
RJR will also likely sell its international tobacco unit as
early as the first quarter of 1999, said Salomon Smith Barney
analyst Martin Feldman.  The most likely suitors are Cie.
Financiere Richemont AG, the makers of Rothmans cigarettes, and
BAT, the world's second-largest tobacco firm.

Source(s):
NEW YORK TIMES, (12/23/98)
   "Seeking A Spinoff, Icahn Raises Stake In RJR Nabisco To 5.6%", p. C4
WALL STREET JOURNAL, (12/23/98)
   "Investor Icahn Boosts Pressure On RJR To Separate Its Food, Tobacco
Units", Tara Parker-Pope, p. B2
USA TODAY, (12/23/98)
   "RJR Stake", p. B1
BLOOMBERG NEWS, (12/22/98)
   "Icahn Takes 5.6% Stake In RJR, Warns Proxy Fight"
BLOOMBERG NEWS, (12/22/98)
   "RJR May Sell International Tobacco Unit In 1st Qtr"

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