Gencorp to Sell General Tire in Effort to Stop Takeover Bid
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AKRON, Ohio — Gencorp Inc., fighting a $2.2-billion takeover bid, announced a major stock buy-back today and plans to sell some subsidiaries, including the tire business that started the company--which began as the General Tire and Rubber Co. in 1915.
General Partners, a partnership consisting of Texas-based oil and gas producer Wagner & Brown and Irvine, Calif.-based glass maker AFG Industries Inc., launched a hostile offer for Gencorp in March. Last week the partnership hinted it might raise the offer to $110 a share, or $2.45 billion.
Gencorp announced it will repurchase 54% of its 22.3 million shares outstanding for $130 a share, for a total of about $1.56 billion.
The restructuring includes immediate steps to sell Gencorp’s tire operations and the RKO subsidiary’s bottling operations, focusing the corporation on defense and aerospace and original automotive equipment.
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