Borden acquisition by KKR
Kohlberg Kravis Roberts & Co. said yesterday that it has acquired nearly 70 percent of Borden Inc.'s shares, enough stock in the financially struggling food giant to complete its $1.9 billion buyout.
In the deal, Borden shareholders will exchange their stock for 2.29146 shares of RJR Nabisco Holdings Corp. that are currently held by Kohlberg, Kravis. At RJR Nabisco's closing price of $5.8125 on the New York Stock Exchange yesterday, the exchange is worth $13.32 a share for Borden stockholders.
Five of the eight Borden directors resigned yesterday and were replaced by KKR executives.
FCC auction adjourns
The Federal Communications Commission's auction of radio spectrum for advanced wireless telephone services adjourned yesterday after 20 rounds with bids totaling $1.66 billion. Bidding will resume Jan. 4.
Yesterday's rounds brought an increase in the intensity of the bidding. After more than a week of being stuck at $30.67 million, bidding for the Baltimore-Washington area's lone license heated up as AT&T; Corp. topped GTE Corp. with a $35.5 million bid in Round 19 and GTE countered with a $40.4 million bid in the 20th round.
Price rise of 0.7% set by GM
General Motors Corp. said yesterday that it is raising prices on its 1995-model cars and trucks by an average of 0.7 percent, or $151 per vehicle, effective Jan. 3.
The latest increase is in addition to GM's announcement in June that prices on its 1995 models would rise by about 2.5 percent, or $494 a vehicle, from final 1994 model prices.
GM bolsters pension fund
General Motors Corp. has contributed $2.5 billion in cash to its pension funds in the year's fourth quarter, bringing total 1994 contributions to $7.7 billion, the automaker said yesterday.
The company began the year with unfunded pension liabilities of $22.3 billion. GM officials said in October that they expected to reduce that number to $13 billion or $14 billion by the end of the year.
Sultan considers Plaza Hotel
New York's posh Plaza Hotel, the crown jewel of Donald Trump's empire and one of America's most prestigious properties, has caught the eye of the Sultan of Brunei.
Mr. Trump insisted yesterday that he has no intention of selling his 51 percent of the property, but said his company had been approached by people interested in acquiring a stake in the Plaza.
Mr. Trump later identified the people as representatives of the sultan, who is head of the oil-rich nation of Brunei in Southeast Asia and is considered one of the world's richest individuals.