GenCorp Makes Deal with Activist Shareholder Group
GenCorp has cut a deal to make peace with an activist shareholder group.
Wednesday, February 16, 2005
The agreement allows the shareholder group, Steel Partners II L.P. to have a hand in picking an additional GenCorp board director, who would oversee its corporate governance issues. In return, GenCorp prevents a proxy fight by Steel over the governance of the company’s board. Last November, Steel offered to buy the Sacramento-based aerospace and real estate company at seventeen dollars a share. Steel had a laundry list of complaints about how GenCorp chief Terry Hall had run the company, claiming several moves unnecessarily diluted the shareholder value of the company. GenCorp, however, rebuffed the buyout. For the Business Journal, this is Mark Larson