Business Notes Mergers

Multibillion-dollar mergers and acquisitions used to constitute high drama in the corporate world. Today, however, these episodes seem to be just business as usual. Last week talk of mergers brewed on three major fronts. Nabisco Brands (1984 sales: $6.3 billion) held exploratory talks with R.J. Reynolds (1984 sales: $13 billion). Wall Street speculates that Reynolds, which sells cigarettes, Kentucky Fried Chicken and Del Monte foods, would pay some $5.3 billion to gobble up Nabisco, king of the snack cupboard and maker of Oreo cookies, Ritz crackers and Baby Ruth candy bars.

Meanwhile, Chrysler announced that it might acquire Gulfstream Aerospace, an aircraft manufacturer, for some $640 million. Finally, Trans World Airlines continued to fend off a hostile bid from that hungry raider, Carl Icahn, who holds more than 26% of the outstanding TWA shares. The airline's executives might try a leveraged buyout, which would involve management's borrowing money to purchase the company. But Eastern Airlines has said that it was considering a bid for TWA. According to Wall Street slang, TWA is now "in play." Stay tuned.