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Metropolitan Life Insurance Company, Swiss Bank Corporation, and several other holders of RJR Nabisco bonds filed suit against the company to prevent it from completing

Metropolitan Life Insurance Company, Swiss Bank Corporation, and several other holders of RJR Nabisco bonds filed suit against the company to prevent it from completing the leveraged buyout acquisition from Kohlberg Kravis Roberts. This leveraged buyout took place during the middle 1980s when the interest rate was extremely high when compared to todays standard interest rate on companys debt. Why do you think the bond-holders wanted to block this transaction? What arguments can you make for and against the bondholders case? What arguments could you make for the shareholders perspective? What are the major factors that determine the value of a firms stock

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