RJR Management Raises Offer

ATLANTA — The management of RJR Nabisco Inc. announced today it will offer nearly $21 billion in cash and stock for the food and tobacco giant, topping the earlier record bid by Kohlberg Kravis Roberts & Co.

R. Ross Johnson, president and chief executive officer of RJR Nabisco, said in a two-paragraph statement that the management group and its financial partners, Salomon Inc. and Shearson Lehman Hutton, would offer stockholders $84 in cash and $8 worth of securities for each Nabisco share outstanding. Kohlberg Kravis Roberts’ bid was valued at $20.3 billion, or $90 a share.