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AMERICAN FINANCIAL ENTERPRISES, INC. TO SELL 4 MILLION SHARES OF THE PENN CENTRAL CORPORATION IN A SECONDARY OFFERING

 CINCINNATI, May 11 /PRNewswire/ -- American Financial Enterprises, Inc. ("AFEI") announced today that it intends to sell approximately four million shares of The Penn Central Corporation (NYSE: PC) common stock in a secondary public offering. AFEI currently owns approximately 14.4 million shares (32 percent) of Penn Central outstanding common stock. The company does not expect to realize a significant gain or loss from the transaction.
 American Financial Corporation ("AFC"), which owns nearly 83 percent of AFEI's common stock, also owns an additional 19 percent of Penn Central. When the proposed sale is completed, the companies will own an aggregate of approximately 42 percent of Penn Central's common stock, including the 23 percent retained by AFEI. Other than through an option for up to 600,000 shares which is expected to be granted by AFEI to underwriters to cover overallotments, neither AFEI nor AFC have plans to sell additional shares of Penn Central.
 AFEI plans to use the proceeds of the sale to substantially reduce its $160 million in private institutional and bank debt, all of which is scheduled to mature later this year. The company expects that it will negotiate a new agreement with banks or other lenders for financing the portion of its debt remaining after the sale.
 The offering will be made only by means of a prospectus which will be contained in a registration statement to be filed with the Securities and Exchange Commission by Penn Central. Penn Central is not selling any shares in the proposed offering.
 AFEI is a holding company whose assets consist chiefly of investments in three publicly traded companies -- Penn Central (32 percent-owned), General Cable Corporation (28 percent-owned) and American Annuity Group, Inc. (11 percent-owned). Penn Central is primarily engaged in specialty property and casualty insurance.
 -0- 5/11/93
 /CONTACT: Sandra W. Heimann of American Financial Enterprises, Inc. 513-579-2121/
 (PC)


CO: American Financial Enterprises, Inc.; Penn Central Corp. ST: Ohio IN: FIN, INS SU: OFR

KL -- CL023 -- 7062 05/11/93 12:27 EDT
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Publication:PR Newswire
Date:May 11, 1993
Words:333
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