	talking point gencorp inc gy the surprise billion dlr tender offer for ohio based conglomerate gencorp inc will not be enough to buy the company analysts said analysts estimated the dlr per share offer from general partners is to dlrs per share below the breakup value of gencorp however market sources and analysts said uncertainty surrounds any transaction because of the legal challenges to gencorp broadcasting licenses gencorp s stock rose to in heavy trading the expectation is either there will be someone else or the bidder will sweeten the offer hoping to get management s cooperation said larry baker an analyst with e f hutton group analysts said there is concern about challenges to gencorp s broadcast licenses for two television and radio stations some of the disputes dating back about years were brought by groups that alleged improper foreign payments and political contributions i think it kind of muddies an already muddy situation said baker of the offer some arbitragers said they were concerned the ongoing issue might be a stumbling block or result in a long period of time for any transaction a source close to general partners however said general partners would apply to the federal communications commission for special temporary authority to hold the broadcast stations the source said if approved the authority would allow a transaction to be carried out if it received the short form approval general partners would set up a trust which would hold the broadcasting properties until the licensing situation is resolved general partners is equally owned by investors wagner and brown and glass maker afg industries inc some market sources speculated an outside buyer such as general partners might even be be a catalyst to resolution of the challenges since it would carry out gencorp s plan to sell the stations gencorp earlier this month reached an agreement with walt disney co to sell its los angeles television station whj tv disney would pay mln dlrs to gencorp and mln dlrs to a group that challenged the station s license gencorp also has a pending agreement to sell wor tv in secaucus n j to mca inc for mln dlrs general partners said it intends to keep the company s plastics and industrial products businesses and its tires and related products segment charles rose an analyst with oppenheimer and co said that on a breakup valuation the company might be worth as much as dlrs per share rose estimated the aerospace business could bring to dlrs per share or one billion dlrs as would diversitech the plastics unit broadcasting including assets pending sale might be to dlrs per share he said the company formerly known as general tire and rubber co also has a tire business rose estimated would be worth five to dlrs per share he estimated the bottling business might also be worth several dollars per share he said analysts said gencorp chairman a william reynolds who became chairman last year has been emphasizing the company s aerojet general and diversitech general businesses gencorp founded in became an unfocused conglomerate over the years and analysts believe reynolds has helped it to improve the management s doing a very fine job in trying to deal with the non strategic assets of the company rose said analysts expect gencorp to resist the tender offer but they declined to predict what steps the company might take they said it would be possible the company might consider a leveraged buyout or restructuring to fend off the offer general partners holds pct of gencorp stock and there was some concern about greenmail greenmail is the payment at a premium for an unwanted shareholders stock i would doubt they would greenmail them but nothing surprises me anymore said rose gencorp has not commented on the offer it has retained first boston corp and kidder peabody and co as advisers reuter 
