What accounts for any difference in the value of three operating plans?

Due to the difference in the strategies, there was difference in the valuations of the
3 different operating plans. The reason for the difference in valuation was due to the
fact that the free cash flow projections from the 3 approaches resulted in different
valuations. The management groups strategy was to sell off the food business and
retain the tobacco business since the former was undervalued. They believed that
this approach could change the perception of the market about the association of
tobacco and food business. This would lead to true valuation of each of the
businesses.
The strategy adopted by KKR was based on their assumption that maintaining
both the tobacco and food businesses could result in better valuation of the
company if the operations of the food business was well-managed. They planned to
retain whole of the tobacco business and significant amount of the food business.
They also planned to increase the valuation by selling off assets of the food
business. The pre-bid strategy was essentially following the same operation
strategy that they already had.
The inherent difference in the planned operating strategies and the capital
structures of the 3 approaches account for the difference in the value of the plans.
2. Evaluate the use of an auction of RJR Nabisco by the Special
Committee?

Which bid should the special committee select, if any? What other steps
should it take?