Unsolicited Takeover Bid for Gencorp Upsets Ohio Mayor

The principals in the proposed $2.2-billion takeover of Gencorp have been relatively quiet since the surprise deal was launched on Wednesday.

But while the corporate types are keeping mum, the mayor of Fairlawn, Ohio,--home to Gencorp--had plenty to say on Friday.

“The Fairlawn community is shocked at the unsolicited offer by out-of-town financial interests to take over Gencorp--our fine Fairlawn corporation and neighbor,” Mayor Peter M. Kostoff said, referring to the conglomerate that includes General Tire Co., Aerojet-General and a host of radio and TV stations.

“We all need to know more about the intentions of the persons behind this attempt to take over Gencorp,” he said in a prepared statement sent nationwide.

Mayor Kostoff said he is concerned that the investment group seeking to acquire Gencorp--a partnership of Irvine-based AFG Industries and Texas-based Wagner & Brown--may take jobs away from Fairlawn.

Statements Questioned

“The raiders say they will sell off most of the company but will preserve the 478 jobs in Fairlawn. This does not seem to be realistic,” Kostoff said.

“I implore everyone to wait for the Gencorp officials (to respond) so they can tell the full side of their story,” he said.

The investment group could not be reached late Friday to comment on the mayor’s remarks, but it is clear they are taking Kostoff’s message to heart.

On Thursday, AFG Chairman R.D. Hubbard and Wagner & Brown partners Cyril Wagner and Jack Brown were in Ohio to meet with state lawmakers and assure them that their intentions are honorable.