KKR settles

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The Independent Online
THE Jewish Foundation for Education of Women has settled its lawsuit with Kohlberg Kravis Roberts, the Wall Street buyout advisers accused of making almost dollars 1bn ( pounds 670m) from the buyout of RJR Nabisco, the food and tobacco giant, in 1989.

A hearing has been scheduled for September by the Delaware Chancery Court on a settlement agreement.

Last year, the foundation, an RJR shareholder, sued KKR, its directors and RJR for 'self-dealing transactions'. It questioned KKR's management fee of dollars 10m a year, noting that KKR made 'almost dollars 1bn in connection with the RJR acquisition'.

According to the settlement, signed last month and released last week, KKR's management fee will decrease annually by increments of dollars 1m until it levels off in 1997 at dollars 5m.