	gencorp gy to sell general tire gencorp inc and continental ag of hanover west germany jointy announced they signed an agreement for continental to buy gencorp s general tire inc subsidiary for mln dlrs in cash under the agreement the companies said continental will uire general tire including its related domestic and foreign operations and gencorp will retain liability for the medical benefits of retired general tire employees who retired on or before november the sale is expected to be completed on or before november one and is subject to meeting certain conditions continental is europe s second largest tire producer last year the company had sales of billion dlrs with billion dlrs generated by its tire operations last year general tire had operating profits of mln dlrs on sales of billion dlrs and gencorp had operating profits of mln dlrs on sales of billion dlrs gencorp spokesman rip tilden said the company will retain about mln dlrs in liability for its former general tire employees under the agreement tilden said gencorp will use the proceeds from the sale to reduce its billion dlr debt in april gencorp sucessfully thwarted a takeover by a partnership formed by afg industries inc afg and wagner and brown with a restructuring program that included the purchase of up to pct or mln shares of its common at dlrs a share for a total of billion dlrs as part of the restructuring gencorp also said it planned to sell its tire business the bottling operations of its rko general inc subsidiary and rko s remaining broadcast properties to focus on the company s aerospace and automotive components businesses tilden said gencorp expects to realize about mln dlrs in after tax proceeds by the end of as a result of sale of several pieces of the nonbroadcast assets of the company including general tire the price paid for general tire would not cause us to reevaluate that estimate said tilden general tire employs people worldwide and has four tire manufacturing plants in the u s and one in canada in a statemnet a william reynolds gencorp chairman said the sale of general tire represents a critical accomplishment in our plan to restructure gencorp reynolds also said gencorp s previously announced sale of its other businesses are proceeding satisfactorily among the pieces of gencorp s empire that remain to be sold are its rko bottling operations gencorp agreed to sell rko s khj tv station to walt disney co dis for mln dlrs that deal awaits approval by the federal communications commission gencorp also received dlrs after tax from the sale of rko s wor tv reuter 
