ROANOKE TIMES
Copyright (c) 1997, Roanoke Times
DATE: Friday, February 28, 1997 TAG: 9702280063
SECTION: BUSINESS PAGE: B-5 EDITION: METRO
DATELINE: NEW YORK
SOURCE: Associated Press
Financier Carl Icahn has sold his entire stake in RJR Nabisco, saying a runup in tobacco stock prices had dimmed chances he could win control of the RJR board and force a speedy spinoff of its food business.
By selling the stock after it gained 35 percent since last fall, the one-time corporate raider appears to have made $130 million before expenses. He had invested $600 million in the company less than 11/2 years ago.
On the news of the sale, RJR shares fell 3 percent Thursday on the New York Stock Exchange, dropping $1.12 1/2 to close at $36.62 1/2 a share.
Even as he announced the deal, Icahn left the door open to resuming a proxy fight for control of RJR sometime in the future, especially if its stock price should turn lower.
But analysts doubted he would be back at RJR's door. ``He made himself a ton of money over a relatively short time frame,'' said Emanuel Goldman, who follows tobacco stocks for PaineWebber.
The analysts said Icahn realized he had no chance of winning the proxy fight for control of the RJR board at the April shareholders' meeting. The stock price is up sharply, its operating divisions are showing improvement, and top management appears willing to discuss a settlement of tobacco lawsuits.
LENGTH: Short : 34 linesby CNB