Hostile Bid for Gencorp Dropped

An investor group today dropped its hostile bid to acquire Gencorp Inc. in light of Gencorp’s proposed restructuring that includes a $1.63-billion stock buy-back.

The group, General Partners, includes AFG Industries Inc., an Irvine, Calif.-based glass maker, and Wagner & Brown, a closely held energy concern based in Midland, Tex. Three weeks ago the group, which already owns 9.8% of Gencorp’s common shares outstanding, launched a tender offer of $100 for each of the remaining shares. Last week it offered to raise the bid to $110 a share.