In response to the Salomon scandal, Rabco Health Services has taken its $100-million initial public
offering (IPO) away from the firm and given it to PaineWebber. The deal with Salomon was expected to come to
market in late August 1991, but it was pushed back steadily and is now dead. Since then, General Medical
Corp., a wholly owned subsidiary that provides around 1/2 of Rabco's $1.3 billion in annual revenues and
virtually all of its profits, has filed for its own IPO. The subsidiary will offer 7.5 million shares between 14 and 16
through sole-manager PaineWebber.