Bonds of RJR Nabisco Inc. jumped yesterday on news that Kohlberg Kravis Roberts & Co. will acquire Borden Inc. for RJR stock worth $2 billion.

Kohlberg Kravis will exchange stock of RJR that it holds for Borden's 141 million shares of common stock. RJR will then issue $500 million of new stock to buy 20% of Borden from Kohlberg Kravis. RJR will also get warrants entitling it to buy another 10% of Borden.

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