IN BRIEF : RJR Nabisco to Sell S. Africa Firms
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NEW YORK — RJR Nabisco Inc.’s prospective new owner said today that it will sell the food-tobacco giant’s holdings in South Africa, two days after Michigan withdrew from a fund used to help finance the record $24.53-billion takeover because of a new state law barring investments in that country.
Kohlberg Kravis Roberts & Co., the New York investment house that won the bidding for RJR late last year, confirmed reports that it plans to sell Royal Beechnut to the division’s South African management and to sell South African Preserving Co. as soon as possible after the takeover is formally completed.
The disclosures, made via Kohlberg’s public relations agent Kekst & Co., appeared to be a reaction to the announcement Wednesday by Michigan officials that they would prohibit a $110-million state pension investment in a Kohlberg fund that will help finance the RJR deal.
Michigan Treasurer Robert A. Bowman said such an investment conflicted with a law effective Jan. 1 banning state investments in companies with ties to South Africa.
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