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...restructuring. The political aftershocks are already severe. Even before the tragedy, Armenians distrusted Gorbachev because of his rejection of their territorial claims to Nagorno-Karabakh, a largely Armenian enclave embedded in neighboring Azerbaijan, a blood enemy of Armenia. The earthquake only heightened the Armenians' anger, and that prompted a furious Gorbachev to describe the airing of nationalist grievances at such a time as "immoral." His words, however, had little effect...

Author: /time Magazine | Title: Soviet Union Vision of Horror | 12/26/1988 | See Source »

...Nabisco offices a few blocks away, Johnson was furious when he learned that the board was ready to sell the company to KKR. His legal advisers swiftly drafted a letter to RJR chairman Charles Hugel, who heads the board but holds no managerial post in the company, declaring they were "astounded" that the directors "would go off into the middle of the night to negotiate." Hugel explained that the KKR bid simply was much higher. By 2 a.m., however, Johnson's advisers persuaded him that his chances were still alive. Armed with a new bid for $108 a share, Johnson...

Author: /time Magazine | Title: 250,000,000,000 Buyout Barons : KKR outfox Ross Johnson's group | 12/12/1988 | See Source »

Hard-line politics has become Adel's life. He dropped out of high school, and says he has no time for marriage. A dedicated nationalist, he will settle for nothing less than an end to Israel and the establishment of a Palestinian state in its place; he is furious that Yasser Arafat is talking about recognizing Israel's right to exist. "If Arafat asks the Palestinians to stop the intifadeh, we will show him the back of our hands," Adel says. "I am willing to sacrifice. I am convinced that we are going...

Author: /time Magazine | Title: Middle East Frustration Springs Eternal | 12/12/1988 | See Source »

Milken's junk-bond department, which he moved from Manhattan to Beverly Hills not long after he formed it a decade ago, quickly became the engine of the Wall Street firm's furious growth. One reason is that junk bonds earn hefty fees: Drexel charges 3% to 4% of an offering's total value, compared with a fee of less than 1% for a higher-grade issue. Milken's web of buyers and sellers for the bonds has given him a virtual lock on the market, though the entry of such competitors as Morgan Stanley and First Boston has whittled...

Author: /time Magazine | Title: A Heap of Woe for the Junkman | 12/5/1988 | See Source »

...market. Since the new IOUs would saddle the company with a riskier load of debt, the old bonds get clobbered. No sooner had Johnson disclosed that he wanted to buy RJR Nabisco, for example, than the company's $5 billion of outstanding bonds lost 20% of their value. Furious bondholders, including Metropolitan Life and ITT, immediately sued for damages. Declared Metropolitan Life chairman Creedon: "No one in his right mind wants to invest in corporate bonds anymore." In fact, the LBO binge has created a financial innovation called the "poison put," which guarantees bondholders against the risk of buyouts...

Author: /time Magazine | Title: Where's the Limit? Ross Johnson and the RJR Nabisco Takeover Battle | 12/5/1988 | See Source »

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