Overspawn (Apocalypse)
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Ok, we are looking at a two story tall creature which has the brain of a pea and melee weapons, fighting against spacecraft in the forms of Retaliators, Annihilators, Hawk Air Warriors, and Valkyrie Interceptors... Yeah, this guy is pathetic. His only good point is that he makes your enemies hate the Aliens, though that's not much good if they hate you, too. Oh well. You can either take it out, so that it can't do more property damage, effectively eliminating any chances of a raise, or you can take it out, damaging a little property and pissing corporations off. I usually shoot it to death. You can choose whichever. It's a pretty pathetic unit.
To Capture: Is this even possible? You can't exactly store an Overspawn in your base, you know. It's a little... BIG, perhaps? I haven't found a way to capture it alive, but it apparently is possible. Maybe shoot down the Mothership before it drops off an Overspawn and kill the troops inside? I can't think of anyways to capture an Overspawn.
Official Entry (Captured Alive): "This enormous creature is deposited by an Alien Mothership. Its primary objective appears to be destruction of the city and annihilation of X-COM bases. The terror and panic that it causes amongst the population indicates a change in Alien strategy. It is possible that they have abandoned their attempts at infiltration and are now only concerned with revenge and retribution against X-COM."
Official Entry (Autopsy): "The Overspawn is a hybrid creature, derived from the Megaspawn genetic pool. It is difficult to kill, but will eventually succumb to bombardment by Disruptor Beams and other powerful weapons. Fortunately it has no ranged combat capability."