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Barbarians at the Gate: The Fall of RJR Nabisco (Paperback)
by Bryan Burrough, John Helyar
| Category:
Leverage buy-out, M & A, Wall Street, Investment banking, Financial markets |
| Market price: ¥ 178.00
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¥ 158.00
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Pre-order item, lead time 3-7 weeks upon payment [ COD term does not apply to pre-order items ] |
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 Good for Gifts |
| MSL Pointer Review:
With more than 500,000 copies sold, this business narrative classic is the definitive account of the largest takeover in Wall Street history. |
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Author: Bryan Burrough, John Helyar
Publisher: Collins
Pub. in: May, 2003
ISBN: 0060536357
Pages: 592
Measurements: 7.9 x 7.1 x 1.4 inches
Origin of product: USA
Order code: BA00090
Other information: Reprint edition
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- Awards & Credential -
The #1 New York Times Bestseller (over six months on the NYT bestseller list) with more than 500,000 copies sold to date. |
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- MSL Picks -
Inside the high stakes world of high finance, this book superbly portrays the happenings the events that led to the rise and eventual fall of two great American companies, RJR and Nabisco. Along the way, these companies in turn merger with other companies resulting in the cash spinning behemoth that became the prey of many corporate finance predators of Wall St.
Both the authors excel at investigative journalism, wherein lies the beauty of this book. What you get from this book is a lucidly written cases on a multitude of things. The making of the brand RJR Nabisco, from the turn of 20th to the 21st century. The rise of the unstoppable buyout machine, KKR, the rise and fall of the leverage buyout (LBO) industry and the rise and fall of one man who spearheaded most of the fall of RJR Nabisco, Ross F Johnson. You end up learning more about many things that you thought were possible and the best part is, the narration style. It’s like watching a good Hollywood movie, a fast paced thriller. So once you start the book you never want to put it down. And when you finish reading, you are left with a feeling of wanting more.
Burrough and Helyar are two former Wall Street Journal reporters who present a comprehensive telling of the battle for control of RJR Nabisco, ultimately won by KKR, led by Henry Kravis in 1988. The book was written in 1990 and provided the final chapter on the LBO excesses of the 1980's. By 1990, the stock market rally had made LBO's less attractive and some of the earlier deals were already starting to unravel and collapse under the weight of the debt payments, as predicted by long-time junk bond critic and rival RJR Nabisco bidder Ted Forstmann.
Target readers:
MBAs, finance majors, and anyone else who is interested in M & A, LBO, investment banking, the Wall Street, and financial markets.
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Bryan Burrough is a special correspondent at Vanity Fair magazine in New York. A former Wall Street Journal reporter, he is the author of Dragonfly and Vendetta, as well as the coauthor of the number one New York Times bestseller Barbarians at the Gate. He lives in New Jersey with his wife, Marla, and their two young sons.
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From Publisher
"In its final decade Reynolds had become less a great company than a great dream machine ... Hoisted onto the auction block, the company became a vast prism through which scores of Wall Streeters beheld their reflected glories."
Over six months on the New York Times bestseller list, Barbarians at the Gate is the definitive account of the largest takeover in Wall Street history. For two months in 1988, Bryan Burrough and John Helyar - reporters covering the story for the Wall Street Journal - watched as Wall Street was gripped by a frenzy of activity the likes of which it had never before experienced. From the first move by RJR Nabisco CEO F. Ross Johnson and his management team to attempt a leveraged buyout of the company to opposition from formidable opponents, including Henry Kravis, to the tense final moments of the bidding process, Barbarians at the Gate gives readers the inside story.
Drawing on interviews with every major player involved in the takeover, Burrough and Helyar offer a behind-the-scenes look at the inner workings of Wall Street. This is the story of CEOs and investment bankers, deal makers and publicity flaks, strategists and socialites - and how they all came together in one pivotal moment. Not only does Barbarians at the Gate provide an unprecedented detailed look at how financial operations at the highest levels are conducted, it also offers a richly textured social history of America during the Roaring Eighties - "a new gilded age, where winning was celebrated at all costs."
Barbarians at the Gate has been called one of the most influential business books of all time - the definitive account of the largest takeover in Wall Street history. Bryan Burrough and John Helyar's gripping account of the frenzy that overtook Wall Street in October and November of 1988 is the story of deal makers and publicity flaks, of strategy meetings and society dinners, of boardrooms and bedrooms - giving us not only a detailed look at how financial operations at the highest levels are conducted but also a richly textured social history of wealth at the twilight of the Reagan era.
Barbarians at the Gate - a business narrative classic - is must reading for everyone interested in the way today's world really works.
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Chapter One
Ross's philosophy is, "We're going to have a party, a very sophisticated, complicated party." - 0. C. Adams, consulting psychologist to RJR Nabisco
Ross Johnson was being followed. A detective, he guessed, no doubt hired by that old skinflint Henry Weigl. Every day, through the streets of Manhattan, no matter where Johnson went, his shadow stayed with him. Finally he had had enough.
Johnson had friends, lots of them, and one in particular who must have had contacts in the goon business. He had this annoying problem, Johnson explained to his friend. He'd like to get rid of a tail. No problem, said the friend. Sure enough, within days the detective vanished. Whatever the fellow was doing now, Johnson's friend assured him, he was probably walking a little funny.
It was the spring of 1976, and at a second-tier food company named Standard Brands, things were getting ugly. Weigl, its crusty old chairman, was out to purge his number two, Johnson, the shaggy-haired young Canadian who pranced about Manhattan with glamorous friends such as Frank Gifford and "Dandy" Don Meredith. Weigl sicced a team of auditors on Johnson's notoriously bloated expense accounts and collected tales of his former protégé's extramarital affairs.
Johnson's hard-drinking band of young renegades began plotting a counter-attack, lobbying directors and documenting all the underlying rot in the company's businesses. Rumors of an imminent coup began sweeping the company's Madison Avenue headquarters.
Then tensions exploded into the open: A shouting match erupted between Johnson and Weigl, a popular executive dropped dead, a board of directors was rent asunder. Everything came to a head at a mid-May board meeting. Weigl went in first, ready to bare his case against Johnson. Johnson followed, his own trap ready to spring.
As the hours wore on, Johnson's aides, "the Merry Men," wandered through Central Park, waiting for the victor to emerge. Things were bound to get bloody in there. But when it came to corporate politics, no one was ready to count out Ross Johnson. He seemed to have a knack for survival.
Until the fall of 1988 Ross Johnson's life was a series of corporate adventures, in which he would not only gain power for himself but wage war on an old business order.
Under that old order, big business was a slow and steady entity. The Fortune 500 was managed by "company men": junior executives who worked their way up the ladder and gave one company their all and senior executives who were corporate stewards, preserving and cautiously enhancing the company.
Johnson was to become the consummate "noncompany man." He shredded traditions, jettisoned divisions, and roiled management. He was one of a whole breed of noncompany men who came to maturity in the 1970S and 1980s: a deal-driven, yield-driven nomadic lot. They said their mission was to serve company investors, not company tradition. They also tended to handsomely serve themselves.
But of all the noncompany men, Johnson cut the highest profile. He did the biggest deals, had the biggest mouth, and enjoyed the biggest perks. He would come to be the very symbol of the business world's "Roaring Eighties." And he would climax the decade by launching the deal of the century - scattering one of America's largest, most venerable companies to the winds.
The man who would come to represent the new age of business was born in 1931 at the depth of an old one. Frederick Ross Johnson was raised in Depression-era Winnipeg, the only child of a lower-middle-class home. He was always "Ross," never Fred - Fred was his father's name. The senior Johnson was a hardware salesman by vocation, a woodworker by avocation, and a man of few words. Johnson's petite mother, Caroline, was the pepper pot of the household - a bookkeeper at a time when few married women worked, a crack bridge player in her free time. Young Ross owed an early knack for numbers and the gift of gab to her; an early entrepreneurial bent be owed to the times. The Johnsons weren't poverty-stricken, but neither did they own their own bungalow until Johnson was eight years old.
Around that period young Ross began working at a variety of afterschool jobs. He used the money he earned for serious things, like buying clothes. He started with standard kid tasks, such as delivering magazines around the neighborhood and selling candy at the circus, then branched into more innovative ventures, such as renting out comic books from his collection. When he grew older, he sold certificates for baby pictures door-to-door. It was an enterprise he would turn to whenever he needed a buck during his years in college.
Johnson wasn't the best student in his high school, ceding that honor to his friend Neil Wood, who would go on to head the huge Cadillac Fairview real estate firm. Johnson was the kind of teenager who could rank in the upper quarter of his class, as he did, without appearing to try very hard, which be didn't. Nor was he the best athlete in school, although he was a rangy six feet three inches by the time he graduated. He was far better at memorizing baseball statistics in The Sporting News than hitting a fastball.
Unlike his father, who hadn't completed high school, Ross Johnson wanted to be a college man, and he took the cross-town bus each day to Winnipeg's University of Manitoba. He was average inside the classroom but excellent out of it: president of his fraternity, varsity basketball, and honors as outstanding cadet in the Canadian version of ROTC. (This despite a propensity for pranks: One night Johnson and some chums ambushed a superior officer, whom they considered a superior jerk, tied him to a diving board, and left him to contemplate his sins as the sun rose.)...
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Library Journal (MSL quote), USA
<2006-12-24 00:00>
The leveraged buyout of the RJR Nabisco Corporation for $25 billion is a landmark in American business history, a story of avarice on an epic scale. Two versions of the fierce competition for the largest buyout ever consummated are presented by skilled journalists with contrasting styles. Burrough and Helyar are clearly fascinated with the personalities of the players in the deal and with the trappings of corporate wealth. The restless, flamboyant personality of Ross Johnson, CEO of RJR Nabisco, is portrayed as the key to the events that were to unfold. The colorful description of all of the players and the events will likely have broad appeal. Lampert signals the complexity of her story by introducing her narrative with a three-page cast of characters. Her focus on the strategy of the players and on the fast-paced action provides a more concise description of a deal big enough to augment the wealth of many rich people. |
New York Times Book Review, USA
<2006-12-24 00:00>
One of the finest, most compelling accounts of what happened to corporate America and Wall Street in the 1980s. |
Los Angeles Times Book Review, USA
<2006-12-24 00:00>
A superlative book... steadily builds suspense until the very end. |
F. Lybrand, USA
<2006-12-24 00:00>
If you want to understand Wall Street of the 1980's read this book, Den of Thieves by Stewart and Predator's Ball by Bruck. This book is an all encompassing depiction of the events that led to the first leveraged-buy out (meaning they used debt, in the form of massive loans, and not just equity or stock), the debut of KKR as a major financial power, and the emergence of "shareholder value" as a buzzword that no CEO will fail to keep in mind.
The authors were both Wall Street Journal reporters who wrote the book in much the same way as they would report- direct to the point, clearly explained, and with little detectable bias as to the fate of the major characters. I very much enjoy this style of writing, if every WSJ reporter were to write a book, I would be there to support them.
The book does a great job of explaining in detail the egregious excess of Nabisco during CEO Johnson's stint at the helm. In this day of clipped expense accounts and flying coach for business, the presence of a "Nabisco Air-Force" of jets and professional athletes and celebrities on the pay-roll is difficult to imagine. The authors do a good job of transitioning from these descriptions into the dirty details of how the deal was put together. The scenes where the transaction is coming together at the final hour, through all of the negotiations and threats, are well-told, I could actually feel the tension and angst in the room.
Read this book. When you're done with it go pick up Den of Thieves and Predator's Ball.
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