Why do you think the bond-holders wanted to block this


Metropolitan Life Insurance Company, Swiss Bank Corporation, and several other holders of RJR Nabisco bonds filed suit against the company to prevent it from completing the leveraged buyout acquisition from Kohlberg Kravis Roberts. This leveraged buyout took place during the middle 1980s when the interest rate was extremely high when compared to today's standard interest rate on company's debt. Why do you think the bond-holders wanted to block this transaction? What arguments can you make for and against the bondholders' case? What arguments could you make for the shareholders' perspective? What are the major factors that determine the value of a firm's stock?

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Finance Basics: Why do you think the bond-holders wanted to block this
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