	gencorp gy rejects unsolicited takeover bid gencorp inc said its board urged shareholders to reject the hostile unsolicited dlr a share tender offer made march by general uisition inc an affiliate of wagner and brown and afg industries inc gencorp also said it is developing a financially superior alternative that would enable shareholders to benefit from the full value of the company in a letter to shareholders chairman a william reynolds said the offer is a highly conditional contingently financed bust up offer that seeks to deny shareholders the true value of their investment in gencorp reynolds said the board reached its decision to reject the offer after careful study with legal and financial advisers he said the board has authorized management to explore alternatives aimed at providing shareholders with a financially superior alternative to the general uisition offer a gencorp spokesman in response to questions would not comment on market speculation that the company s management may develop a leveraged buyout offer of its own he would also not comment on when a better alternative might be developed gencorp s stock has traded well above the dlr offer price since the tender was made today gencorp closed at up reynolds said in the letter that for the last few years gencorp management has taken action to enhance shareholder value and the stock price and earnings have improved since he joined the company gencorp said the partnership s offer is a bargain price uisition that was using financing from a syndicate of banks that does not yet exist and a bridge loan from shearson lehman brothers that shearson is not obligated to provide reynolds also said the offer would result in a radical alteration and selloff of gencorp s assets including aerojet general to refinance general uisition s borrowings with the profits going to wagner and brown and afg instead of shareholders the letter also said the general uisition offer jeopardizes the security and interests of its shareholders employees customers suppliers and the communities throughout the country where the company s facilities are located reuter 
