IN RE RJR NABISCO, INC. SHAREHOLDERS LIT.


576 A.2d 654 (1990)

In re RJR NABISCO, INC. SHAREHOLDERS LITIGATION.

Court of Chancery of Delaware, New Castle County.

Decided: February 8, 1990.


Attorney(s) appearing for the Case

Joseph A. Rosenthal of Morris, Rosenthal, Monhait & Gross, P.A., Wilmington, and Roger W. Kirby of Kaufman Malchman Kaufmann & Kirby, New York City, and Ralph L. Ellis of Abbey & Ellis, New York City, for plaintiffs.

Robert K. Payson of Potter Anderson & Corroon, Wilmington, and Melvyn L. Cantor, and Lyndon M. Tretter of Simpson Thacher & Bartlett, New York City, for defendants Kohlberg Kravis Roberts & Co., RJR Holdings Corp., RJR Acquisition Corp. and RJR Nabisco, Inc.

Stephen P. Lamb, and Curtis Alva of Skadden, Arps, Slate, Meagher & Flom, Wilmington, for defendants William S. Anderson, Albert L. Butler, Jr., John L. Clendenin, Martin S. Davis, Ronald H. Grierson, John W. Hanley, Charles E. Hugel, Vernon E. Jordan, Jr., Juanita M. Kreps, John D. Macomber, John G. Medlin, Jr., and Robert M. Schaeberle.

Grover C. Brown, Edward M. McNally, and Mary M. Johnston of Morris, James, Hitchens & Williams, Wilmington, and Jonathan M. Hoff, Dennis J. Block, Michael J. Maimone, and Beth J. Jacobwitz of Weil, Gotshal & Manges, New York City, for intervention applicants as defendants and counterclaimants.


OPINION

ALLEN, Chancellor.

Pending is a motion to intervene as defendants and to assert a declaratory judgment counterclaim. Applicants are Lazard Freres & Company and Dillon Read & Company, Inc., the investment bank advisors to the special committee of the board of directors of RJR Nabisco, Inc. in the auction and sale of that company to an affiliate of Kohlberg Kravis Roberts & Co. ("KKR").

Also pending is a motion by plaintiffs —...

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