Feeling the pressure from hedge fund shareholder Steel Partners, GenCorp Inc. announced an agreement with the state Department of Toxic Substances Control, saying it had obtained environmental clearance on 2,300 acres earmarked for a massive real estate project.
GenCorp's company, Aerojet, says it has passed a key milestone in its land-development effort, the agreement gives Aerojet the green light on 2,300 acres that are to become part of the Rio del Oro development on the edge of the company's Rancho Cordova complex.
GenCorp has been under pressure from hedge fund activists to accelerate its land-development program. Earlier this month, GenCorp president and chief executive Terry Hall resigned as the company lost a power struggle with its largest shareholder, New York hedge fund Steel Partners II.
The hedge fund now has effective control of the GenCorp board and is expected by Wall Street analysts to step up the land-development business.
Steel Partners II, L.P. is a long-term relationship/active value investor that works with the management of its portfolio companies to increase corporate value for stakeholders and shareholders.