Case Assignment - RJR Nabisco
Case Assignment - RJR Nabisco
CASE ASSIGNMENT
Answer only the question asked including the reasoning & calculations behind the answer.
Present an intelligent analysis but be concise and to-the-point. Do not ramble.
Minimum 10 point font and format professionally.
Should include group number (if group assignment), student name(s), course (e.g. FIN-705), and
assignment number (e.g. Assignment 2) at the top of the response.
Submitted via LMS by the due date/time.
Be in Powerpoint, MS Word or PDF format plus Excel spreadsheets where appropriate.
CASES:
RJR Nabisco
The RJR Nabisco Board A & B
Required: Please submit a written report & Excel calculations answering the following:
1. What was the value of RJR Nabisco under
a. The pre-bid operating strategy?
b. The Management Groups operating strategy?
c. KKRs operating strategy?
2. Use the APV method to analyze KKRs bid including all calculations.
3. What accounts for any difference in the value of the three operating plans?
4. Evaluate the Special Committees use of an auction of RJR Nabisco. How
well did the board, and especially the special committee, manage the
situation?
5. Which bid should the Special Committee select, if any? What other actions
should the Special Committee take?
Required: Please submit a slide presentation summarizing the above. Presentations will
be in class on May 29.