GENCORP <GY> REJECTS UNSOLICITED TAKEOVER BID Gencorp Inc said its board urged shareholders to reject the hostile unsolicited 100 dlr a share tender offer made March 18 by General Acquisition Inc, an affiliate of Wagner and Brown and AFG Industries INc. Gencorp also said it is developing a financially superior alternative that would enable shareholders to benefit from the full value of the company. In a letter to shareholders, Chairman A. William Reynolds said the offer is a "highly conditional, contingently financed bust-up offer" that seeks to deny shareholders the true value of their investment in Gencorp. Reynolds said the board reached its decision to reject the offer after careful study with legal and financial advisers. He said the board has authorized management to explore alternatives aimed at providing shareholders with a "financially superior" alternative to the general acquisition offer. A Gencorp spokesman, in response to questions, would not comment on market speculation that the company's management may develop a leveraged buyout offer of its own. He would also not comment on when a better alternative might be developed. Gencorp's stock has traded well above the 100 dlr offer price since the tender was made. Today, Gencorp closed at 114-1/4, up 1-5/8. Reynolds said in the letter that for the last few years, Gencorp management has taken action to enhance shareholder value, and the stock price and earnings have improved since he joined the company. Gencorp said the partnership's offer is a "bargain price" acquisition that was "using financing from a syndicate of banks that does not yet exist and a bridge loan from Shearson Lehman brothers that shearson is not obligated to provide." Reynolds also said the offer would result in a radical alteration and selloff of Gencorp's assets, including Aerojet General to refinance General Acquisition's borrowings with the profits going to Wagner and Brown and AFG instead of shareholders. The letter also said the General Acquisition offer "jeopardizes the security and interests" of its shareholders, employees, customers, suppliers and the communities throughout the country where the company's facilities are located.