GENCORP <GY> SAYS BUYBACK BETTER THAN TAKEOVER
GenCorp Inc said the decision by
General Partners, comprised of AFG Industries and Wagner and
Brown, to end its hostile offer for the company supports its
belief that the buy back offer it announced yesterday was a
"financially superior alternative."
    GenCorp said it would annouce details of its plans to buy
back 54 pct of its stock for 1.6 billion dlrs, or 130 dlrs a
share, later this week. GenCorp's buy back was made to fend off
the hostile 2.3 billion dlr, 100-dlr-a-share, tender offer by
AFG and Wagner and Brown.
    Earlier today AFG and Wagner and Brown said that without
the benefit of additional information available to GenCorp's
management, it cannot compete economically with GenCorp's
proposal.
    The group said it is ending its tender offer for GenCorp
and promptly return to tendering shareholders all shares
tendered pursuant to its offer.
    The group owns 9.8 pct, or 2,180,608 shares, of GenCorp's
outstanding shares.
 Reuter
