GENCORP &lt;GY> BID COULD BE RAISED, GROUP SAYS

  An investor group said it might be
  willing to raise its 100 dlr per share offer for GenCorp but so
  far the company has turned down requests for a meeting.
      "We might be able to see some additional value if we could
  meet" and get more financial data, said Joel Reed, speaking for
  the investor group.
      Reed told Reuters that GenCorp chairman A. William Reynolds
  "was not interested in sitting down and talking with us at this
  time." Cyril Wagner sought the meeting in a recent telephone
  conversation with Reynolds, Reed said.
      Wagner and Brown, along with AFG Industries Inc &lt;AFG>,
  recently launched a surprise tender offer for GenCorp. The
  offer is worth 2.23 billion dlrs.
      Reed said under the circumstances the 100 dlr per share
  tender offer, which expires April 15, is a fair offer. GenCorp
  gained 3-1/2 to 114 today on the NYSE.
      Reed outlined a plan to reshape GenCorp in the event his
  group wins control. He said aerospace, soft drink bottling and
  entertainment units are potential divestiture candidates. He
  said the tire business, which the group wants to keep, may be
  more viable if merged with another tire company.
      "One option would be to try to grow the tire business
  through combination or an acquisition," Reed said. He said he
  believes such a merger could create a stronger force in the
  tire industry.
      Gary Miller, chief financial officer of AFG, said his
  company has a record of acquiring mature businesses and
  boosting productivity. Automation and incentives tied to profit
  sharing have been used with success, he said.
      In the case of GenCorp's RKO General broadcasting stations,
  Reed said the plan of the partners is to step into GenCorp's
  shoes and proceed with plans to  sell the stations.
      The partners said if they succed in acquiring GenCorp they
  intend to consummate sale of WOR-TV in New York to MCA Inc
  &lt;MCA>. GenCorp last year entered into an agreement to sell the
  station for 387 mln dlrs.
      The partners also said if they acquire Gencorp they would
  also proceed with the proposed sale of KHJ-TV in Los Angeles to
  Walt Disney Co &lt;DIS>. RKO General would receive 217 mln dlrs
  and Fidelilty Television, which challenged the license, would
  get about 103 mln dlrs.
      The partners also said the Federal Communications
  Commission established an expedited schedule for receiving
  comments on their request for special temporary authorization
  of proposed trust arrangements while the FCC considers a formal
  application for transfer of the broadcast unit.
      Reed said he was pleased with the expedited schedule
  because it provides time for the agency to act on the request
  before the expiration of the tender offer.
      He said it was the aim of the partners to move as quickly
  as possible to eliminate uncertainty surrounding the stations.
      Asked about criticism of the takeover attempt voiced by
  some municipal officials in Akron, Ohio, where GenCorp is
  headquartered, Reed said, "the plan of the partners offers long
  term growth for Ohio."
      He noted that the aerospace business, slated for
  divestiture under the partners' plan, is located in California.
  "Our program is one that overall would provide the greatest
  long term growth for all segments," he said.
  

