as private company, 18, 201
Revlon suit against, 211
Rifkind’s resignation from, 207
McCarthy, Fred, 66, 105–6, 116, 137, 141, 144, 183
Malanowski, Mary Lou, 76, 130, 131
management, 19, 154, 155, 261, 272–73
of Dan River, 161
Icahn’s views on, 156, 159, 162, 186, 190–91
in leveraged buyouts, 98–99, 196
Milken’s effects on, 19
of National Can, 122–26, 136, 147–48, 261
1960s takeovers and, 263
Revlon buyout plan of, 219–21, 225
Management and Budget, U.S. Office of, 264
manager-owners, see owner-managers
“Managing the Corporate Financial Structure” (Milken and Walter), 99–100
Mandrake, 180, 181, 182
Mansfield, Mike, 243, 316
Mantar Associates, 16
Manufacturers Hanover, 114, 118, 124–25, 227
margin rules, 159, 211–12, 215, 226, 264–65
Marks, Howard, 57, 277
Marshall Field, 113, 126, 159–61, 189
stock of, 159–60
Martin, Preston, 264
Massachusetts Mutual, 33
Matarese Circle, The (Ludlum) 357–58
Mattel, Inc., 292
Maultasch, Cary, 329
Max Factor and Company, 234, 265
May, Peter, 13, 17, 105–12, 114–19, 144–47
background of, 110
financial compensation of, 145–146
National Can deal and, 17, 105–112, 128–29, 130, 133, 135, 136, 138, 141
Peltz’s meeting of, 110
MCI Communications, 78–80, 243
M.D.C. Holdings, 259
merchant banking, 66, 191, 248, 249–50, 288–89, 308, 321
see also bridge financing
mergers and acquisitions (M&A), see takeovers
Merrill Lynch, 30, 65, 250, 290, 325, 345, 346
junk bonds and, 71
Mesa Petroleum, 13, 17, 101, 107, 164–67
Metromedia Broadcasting Corporation, 73, 245, 267, 347
Metzenbaum, Howard, 258
Mexico, 353
Meyer, C. E., Jr., 172
mezzanine financing, 98–99, 100, 123–24
MGM/UA Entertainment Company, 78–79, 304
Middlebury College, 182
“Mid-Week Option Report, The,” 151
Midwest Federal Savings and Loan Association, 291
Milken, Bernard, 24, 50, 53, 67
Milken, Mrs. Bernard, 53
Milken, Lori Anne Hackel, 24, 50, 52, 81, 106, 313–14
Milken, Lowell, 54–55
appearance of, 55
Boesky Day and, 320, 342–43
brother compared with, 55
as brother’s confidant, 55
brother’s disagreements with, 306
brother’s investments with, 80–82, 313
control as obsession of, 55
political contributions of, 259
Milken, Michael:
anti-Semitism and, 29
appearance of, 11, 23, 24, 329, 355
arrogance of, 25
auto accident of, 313
autonomy of, 32–33, 50–53, 69, 297–98, 304–5
background of, 23, 24, 354–55
Boesky Day and, 317–30
bonuses of, 247
client relationships of, 287–92
collectivism and antihierarchical form as preoccupations of, 84–86, 297, 356
college-years portfolio management of, 24, 27–28
commitment to helping people of, 57, 358–59
competition as viewed by, 249, 358–59
compulsion of, 314
connection’s importance to, 68
as contra-thinker, 70
conversational style of, 315
corporate establishment as viewed by, 12
corporate finance’s merger with, 66–68, 299
critics of, 266–68, 270, 301–3, 344–46
disciples of, 52, 83–84, 94, 262
diverse functions of, 307
dominant position of, 94–95
at Drexel Burnham, 31–40, 42–48
at Drexel Firestone, 23–24, 27–31, 271
at Drexel Harriman Ripley, 24–27
education of, 24
ego and appetite of, 14, 18, 245, 252, 301–2
familiarity sought by, 26
on financing as art form, 249
as fortune-maker, 12, 51–52, 57–58, 68–69, 88–93
franchise arrangement of, 10–11
Gobhai meetings and, 62–66, 100–101
as great equalizer, 203
greed of, 250, 252, 255, 312–13, 314, 357
hearing of, 87
honor of, 79
hubris of, 315–16
as inspired salesman, 55–57, 95, 358
investment partnerships of, 80–83, 279, 282, 299–300, 308, 310, 357
in Japan, 243–44, 315
kinetic quality of, 12, 24, 255, 301, 314
as the King, 10, 16, 80, 84, 319, 359
legacy of, 347
lifestyle of, 313–14, 357
limited-partner status of, 279, 310
loyalty concerns of, 52, 68, 86, 88, 277, 286
as magician, 14, 109, 141, 192, 193
memory of, 95, 309
meritocracy of, 301
messianic qualities of, 11, 25, 29, 56, 68, 84, 233, 243–44, 262, 271, 334, 357
money machine of, 275–84, 290, 302, 312
“monsters” created by, 142, 185, 295–96
motivations of, 312–14
as “national treasure,” 353
new paper invented by, 71–72
“perception vs. reality” theme of, 271–72, 297, 355
personality of, 12, 16, 18, 25, 55
philanthropy of, 313–14
placement service of, 277–78
political role and contributions of, 259, 264
power of, 55, 66, 73, 285–87, 297, 302, 327, 347, 356, 359
Predators’ Ball (1985) and, 10–17, 294
Predators’ Ball (1987) and, 329
press debut of, 353–54
principal mentality of, 28, 64, 289–90
pros and cons of work of, 19–20, 347
refusal to cut back deals of, 79–80, 166
reinvestment policy of, 33, 58, 357
reverse snobbism of, 84–85
SEC depositions of, 35, 79, 81, 83, 85–88, 279, 308–12, 315, 326
secrecy and control desired by, 32, 53, 55, 68, 69, 86, 87, 112, 149, 279, 285–89, 324, 326, 327, 352, 354, 356, 357, 359
self-image of, 88
showmanship of, 95
social discomfort of, 23–24
speeches of, 271–74, 297, 347, 359
summary of process used by, 244
time off of, 88, 106
in time warp, 347–48
toughness of, 79
trading profits of, 32, 51, 64, 69, 311
trusts for children of, 81, 93
tyrannical behavior of, 301–2
Underwriting Assistance Committee vs., 304–8, 351
as upside player, 33–34, 58
wealth dilemma of, 356–57
work habits of, 10, 16, 50, 51, 53, 56, 63, 86–87, 106, 298, 315, 357
see also Drexel Burnham Lambert
Milken, Sandra, 55, 81
Milken family, assets of, 54
Milken Family Foundation, 314
Milow Corporation, 82
Milton Bradley, 198
mini-Predators’ Ball (1986), 243–44, 316, 340
Mitchell, Michael, 211
Mizel, Larry, 259
money managers, 11, 14, 277
Milken’s speeches to, 271–74, 297, 359
money-market mutual funds, 91
Montagu, Samuel, 191
Germaine Monteil, 234
Moody’s, 27
&nbs
p; Moredon Partners Ltd., 81
Morgan, J. P. 26, 66, 270
J. P. Morgan and Company, 26
Morgan Guaranty Trust Company, 26, 227, 254, 255
Morgan Stanley and Company, 30, 65, 95, 248–49, 250, 287
political contributions of, 260
Revlon battle and, 209–10, 217, 220, 231
mortgages, 91, 281, 298
leveraged buyouts compared with, 99
Mount Vemon Associates, Inc., 146
Movie Labs, 198
movies, 73–74
as tax shelters, 54
Mulheren, John, 35
Multimedia, 17
municipal finance, 251, 281
Murdoch, Rupert, 245, 267
mutual funds, 91
closed-end, 154
discount-bond, 33
high-yield, 73, 79–80, 94
REITs compared with, 34
National Association of Securities Dealers (NASD), 81
National Bond Fund, 33
National Can, National Can deal, 13–14, 17–18, 105–9, 119, 122–142, 144, 146–48, 170, 203, 273, 323–24
American Can acquired by, 141, 142
bonds trading hands and, 131–35
bonus pool and, 136
business improved at, 137–38
commitments raised for, 129–32, 136, 137, 168
first vs. second tier and, 134–35
as hard sell, 126
as hostile takeover, 130–31
management of, 122–26, 136, 147–48, 261
stock of, 122, 123, 125, 126, 137, 148
National Health Laboratories, 225, 234
National Westminster Bank USA, 161
Neto, Delfin, 197
Newberg, Bruce, 328
New Jersey Bureau of Securities, 160
New York, 257
New York Air, 173
New York Central Railroad, 155
New York State Insurance Commissioner, 280
New York Stock Exchange, 72, 108, 151, 160
New York Times, 177, 217, 228, 342, 351
Norcliff Thayer health products, 232
Nortek, 213–14
Northview Corporation, 319
Northwest Airlines, 184
Northwest Industries, 17, 135, 143, 163
Nortman, Stanley, 190
NPM (consulting company), 112, 118, 145
NVF Company, 120, 122–23
Oakley-Sutton Management Corporation, 81, 328
O’Brien, Jack, 47
Occidental Petroleum Corporation, 243
Ocean, Billy, 348
oil companies, disastrous investments of, 272
Onassis, Jacqueline, 236
One First National Plaza, 312
O’Neill, Jennifer, 189
“One-Man Revolution, A” (Sloan and Rudnitsky), 270
Oppenheim, Appel, Dixon and Company, 320
Oppenheimer, 65, 287
options, 151, 152, 162–63
Orens, Morris, 155
Otter Creek (Milken investment partnership), 81, 279
overfunding, 68, 290, 302
Owens Illinois, 161
owner-managers, 67, 69, 88
Considine’s views on, 263
return of, 19, 186, 273, 332
Weinroth’s views on, 332–33
Oxoco, 209, 249
Ozark Airlines, 184
Pacific Asset Holdings, 278–79
Pacific Lumber, 143
Paine Webber, 178–80, 335
Pan American World Airways, 44, 258
Pangia, Robert, 253
Panner, Owen, 284
Pantry Pride, 18, 193, 197, 198, 201–240, 272–73, 352
disclosure violations allegations and, 212–14, 226
Drapkin’s purchase of convertible debentures of, 208
net operating loss (NOL) of, 201
Revlon battle team of, 208–9, 211
Revlon lawsuit against, 211–13, 215
Revlon’s merger with, 234
stock of, 202, 213, 231
Papitto, Ralph, 213, 215
PARS (TWA’s computerized reservation system), 179–80, 181, 184
partnerships:
of Drexel corporate finance investment, 68–69
general vs. limited, 68
Parton, Dolly, 60
passbook accounts, 91
Paul, Weiss, Rifkind, Wharton and Garrison, 105, 128, 194, 196, 207
Peiser, Robert, 19, 170, 172, 178, 181
Peltz, Nelson, 13, 14, 105–19, 140–148, 160, 168, 190, 201
ambitions of, 110–11
background of, 109
career path of, 109–12
financial compensation of, 145–146
Icahn compared with, 169–70, 187
lifestyle of, 108, 110, 112, 144–45, 186
May’s meeting of, 110
Milken introduced to, 112
Milken’s relationship with, 108, 146–47, 170
National Can deal and, 17–18, 105–9, 119, 125–32, 135, 138, 140, 170, 323–24
parrot incident and, 112
Revlon battle and, 212
as symbol of new Drexel, 140–42
Uniroyal and, 141–45, 170, 263
Peltz, Robert, 109–10, 111
Abe Peltz and Sons, 109
Penn Central, 165
bonds of, 34, 112
Pennsylvania, University of, Wharton School of, 24, 59
Pennsylvania Engineering, 122–23, 322, 324
Pennzoil, 164
pension funds, 94, 120, 207
People Express, 249, 287
“perception vs. reality” theme, 271–72, 297, 355
Perelman, Claudia Cohen, 198, 218, 236
Perelman, Faith Golding, 196, 198, 201, 202
Perelman, Raymond, 198
Perelman, Ronald, 109, 120, 193–240, 333
background of, 198–99
divorce of, 201, 202
lawsuit against, 199–201
Levine and, 234–35
MacAndrews and Forbes and, 18, 132, 193, 198, 199, 201, 203, 235, 237, 305
Milken’s relationship with, 235–236, 238
Murdoch and, 245
National Can deal and, 125, 132, 135
Pantry Pride and, 18, 193, 197, 199, 201–40, 272–73
post-Revlon acquisitions of, 233–234
at Predators’ Ball (1986), 14, 258
Revlon and, 18, 117, 182, 193, 203–40, 347; see also Revlon, Inc.
Salomon Brothers and, 346–47
Shenkman and, 277
social climbing of, 186, 236
Technicolor acquired by, 198–201, 210
Pesonen, Eerki, 281, 283
Phibro Corporation, 248
Philadelphia Electric, 42
philanthropy, 189, 313–14
Philip Morris Companies Inc., 221
Phillips Petroleum, 13, 19, 107, 127, 130, 163–71, 173, 191, 203, 208, 322
Drexel commitments for, 19, 167–68
as Drexel’s coming-out, 169
leveraged buyout of, 166–67
recapitalization plan of, 164, 167, 169
stock of, 164, 165, 168–69
uniqueness of Icahn’s bid for, 166
Picara Valley, 160–61
Pickens, T. Boone, Jr., 13, 14, 100, 102, 107, 109, 203, 218, 231, 355
Phillips Petroleum and, 13, 164, 165, 166, 171
at Predators’ Ball (1986), 258
Pierce, Fenner and Smith, 30
poison pill, 168, 216, 217, 224, 226, 256
Polaroid, 152
Political Action Committees (PACs), 259
political contributions, 259, 260
politics, Drexel’s influence on, 258–260, 264–65
polo matches, 190
Posner, Steven, 121
Posner, Victor, 12–13, 16, 93, 106, 119–25, 156
Boesky Day and, 318, 320–23
business problems of, 128, 139–40
Considine and, 122–23, 125
Engel and, 121, 123, 338, 340
first business venture of, 121–22
fortune made by, 120
National Can and, 119, 122–25, 127–29, 131, 132, 139–40, 146
personality of, 120–22
Predators’ Ball (1985), 10–20, 135–136, 141, 170, 183, 259, 294
entertainment at, 16
“girls” at, 15
Predators’ Ball (1986), 182–83, 257–259, 291, 302
Predators’ Ball (1987), 329
preferred stock, 290, 325
defined, 265
President’s Council of Economic Advisers, 261–63, 270
Prime Capital Associates, 231
Princeton-Newport Limited Partnership, 81, 311, 328
Princeton University, 189
Princeville Development Corporation, 284
private placements, 129–30
disadvantages of, 130
insurance companies and, 45, 46, 100
Revlon battle and, 217–18, 223
Procter and Gamble, 221
productivity, Milken’s views on, 356–57
Provident Bank, 36
proxy fights, 154–55, 157–59, 164–165, 168, 172, 202–3
Prudential Bache, 252
Prudential Insurance Company of America, 134, 311
publicity, Milken’s views on, 86
Pullman, 96
Quanex, 349
“quasi-trader salesmen,” 86
Racketeer Influenced and Corrupt Organizations Act (RICO), 159–60
Rainwater, Richard, 278
Ralston Purina, 334
RA Partnership, 81
“Rape and Pillage in the Corporate Takeover Jungle” (Lipton), 204
Rapid-American, 35, 37–38, 83, 93, 327
RCA, 99
Reagan Administration, 97, 260, 264
real-estate investment trusts (REITs), 34–35, 44–45, 154–55, 307, 308
recession, 29, 33, 34, 70–71, 77, 270, 345
Regan, James, 81–83, 300, 311, 327–328
Reheis special chemical business, 232
Reich, Ilan, 318
REITs (real-estate investment trusts), 34–35, 44–45, 154–55, 307, 308
relationship banking, 63
“Relationship Group,” 340
Reliance Capital Group, L. P., 16, 120
Reliance Financial Services Corporation, 13, 35, 38, 83, 107, 164, 293–94
Reliance Group Holdings, 82
Reliance Insurance Company, 36, 93, 291
Republic Corporation, 292
research and development (R&D), 19, 205, 262, 263
Resorts International, 58, 173
restructuring, corporate, 19
retirement, 253
Revlon, Inc., 18, 117, 182, 193, 203–240, 280, 347, 352
banks in battle for, 210–11
bond purchases and trading and, 232–33
commitment fees and, 221, 223, 232
conquest of, as end of an era, 227–30
defense moves of, 210–13, 215–17, 224, 226–27
defense team of, 204–8
divestures and, 210, 221, 231