Steel Partners Reevaluating GenCorp Purchase

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(Sacramento, CA)
Monday, November 22, 2004
Steel Partners has pulled back its offer to buy GenCorp for $17 a share. The hedge fund says it will evaluate the impact of GenCorp’s recent offering of new stock and debt. The aerospace and defense manufacturer, based in Rancho Cordova, has been much in the news during this ownership tussle. Institutional investors are railing against CEO Terry Hall’s actions, which in fact position the company to expand its jet propulsion business. Hall doubled Aerojet’s market in one year, after becoming CEO in 2002. Steel Partner owns nearly 10% of GenCorp’s stock, and has been leading a takeover effort, backed by the offer to buy.