Editing Corporate raid (section)

===Ronald Perelman and Revlon===
Drexel Burnham raised a $100 million [[wikt:blind pool|blind pool]] in 1984 for [[Nelson Peltz]] and his holding company Triangle Industries (later [[Triarc]]) to give credibility for takeovers, representing the first major blind pool raised for this purpose. Two years later, in 1986, Wickes Companies, a [[holding company]] run by Sanford Sigoloff, would raise a $1.2 billion blind pool.<ref>{{Citation |last=Bruck |first=Connie |title=The Predators' Ball: The junk-bond raiders and the man who staked them |location=New York |publisher=Simon and Schuster |year=1988 |pages=[https://archive.org/details/predatorsballthe00bruc/page/117 117–118] |isbn=0-671-61780-X |url=https://archive.org/details/predatorsballthe00bruc/page/117 }}.</ref> In later years, Milken and Drexel would shy away from certain of the more "notorious" corporate raiders as the firm and the private equity industry attempted to move upscale.

In 1985, Milken raised $750 million for a similar blind pool for [[Ronald Perelman]], which would ultimately prove instrumental in acquiring his biggest target: The [[Revlon|Revlon Corporation]]. In 1980, [[Ronald Perelman]], the son of a wealthy Philadelphia businessman, and future "corporate raider", having made several small but successful buyouts, acquired [[MacAndrews & Forbes Holdings|MacAndrews & Forbes]], a distributor of licorice extract and chocolate, which Perelman's father had tried and failed to acquire 10 years earlier.<ref name="RichardHackPage13">{{citation |title=When Money Is King |last=Hack |first=Richard |year=1996 |page=[https://archive.org/details/whenmoneyiskingh00hack/page/13 13] |publisher=Dove Books |location=Beverly Hills, CA |isbn=0-7871-1033-7 |url=https://archive.org/details/whenmoneyiskingh00hack/page/13 }}.</ref> Perelman would ultimately divest the company's core business and use [[MacAndrews & Forbes Holdings|MacAndrews & Forbes]] as a holding company investment vehicle for subsequent leveraged buyouts including [[Technicolor|Technicolor, Inc.]], [[Pantry Pride]] and [[Revlon]]. Using the [[Pantry Pride]] subsidiary of his holding company, [[MacAndrews & Forbes Holdings]], Perelman's overtures were rebuffed. Repeatedly rejected by the company's board and management, Perelman continued to press forward with a [[hostile takeover]], raising his offer from an initial bid of $47.50 per share until it reached $53.00 per share. After [[Revlon]] received a higher offer from a [[white knight (business)|white knight]], private equity firm [[Forstmann Little & Company]], Perelman's [[Pantry Pride]] finally was able to make a successful bid for [[Revlon]], valuing the company at $2.7 billion.<ref name="2.7Billion">{{citation |first=Richard |last=Stevenson |title=Pantry Pride Control of Revlon Board Seen Near |newspaper=The New York Times |page=D5 |date=November 5, 1985 |access-date=April 27, 2007 |url=https://www.nytimes.com/1985/11/05/business/pantry-pride-control-of-revlon-board-seen-near.html }}</ref>  The buyout would prove troubling, burdened by a heavy debt load.<ref name="PossibleBuyout">{{citation |first=Ann |last=Hagedom |title=Possible Revlon Buyout May Be Sign of a Bigger Perelman Move in Works |newspaper=[[The Wall Street Journal]] |page=1 |date=March 9, 1987 }}.</ref><ref name="RevlonProfits">{{Citation|url=http://findarticles.com/p/articles/mi_m0EIN/is_2005_March_8/ai_n11853855/ |title=Revlon Reports First Profitable Quarter in Six Years |access-date=February 7, 2007 |journal=Business Wire |date=March 8, 2005 |author=Gale Group }}{{dead link|date=May 2017 |bot=InternetArchiveBot |fix-attempted=yes }}.</ref><ref name="RevDebt">{{Citation |url=https://www.usatoday.com/money/companies/earnings/2005-03-08-revlon-usat_x.htm |title=Revlon profit first in more than 6 years |access-date=March 20, 2007 |newspaper=[[USA Today]] |date=March 8, 2005 |first=Cotten |last=Timberlake |name-list-style=amp |first2=Shobhana |last2=Chandra }}.</ref> Under Perelman's control, Revlon sold 4 divisions: two were sold for $1 billion, its vision care division was sold for $574 million, and its National Health Laboratories division was spun out to the public market in 1988.  Revlon also made acquisitions including [[Max Factor]] in 1987 and [[Betrix]] in 1989, later selling them to [[Procter & Gamble]] in 1991.<ref name="fu">{{citation |url=https://www.fundinguniverse.com/company-histories/macandrews-forbes-holdings-inc-history |title=MacAndrews & Forbes Holdings Inc. |access-date=May 16, 2008 |work=Funding Universe }}</ref> Perelman exited the bulk of his holdings in Revlon through an [[Initial public offering|IPO]] in 1996 and subsequent sales of stock. As of December 31, 2007, Perelman still retains a minority ownership interest in Revlon. The Revlon takeover, because of its well-known brand, was profiled widely by the media and brought new attention to the emerging boom in leveraged buyout activity.  Litigation associated with the takeover has also become standard reading for introductory business organization classes in most law schools, introducing what have come to be known as "Revlon duties" for boards of companies that are up for auction.