	bilzerian prepared to tender for pay n pak pnp investor paul bilzerian said if pay n pak stores inc enters into a merger accord with him he will immediately begin a tender offer for mln shares for dlrs per share in cash bilzerian told reuters he believes his offer is superior to a leveraged buyout proposal disclosed in an announcement by the company this morning the company said it is evaluating both proposals bilizerian said he was optimistic his offer will be accepted at a meeting of the board of directors wednesday officials of pay n pak did were not immediately available for comment bilzerian said he has a pool of mln dlrs raised by shearson lehman brothers inc available for the tender and we may add a bank to that we ve submitted an agreement we re prepared to sign he said shares not accepted in bilzerian s tender would be exchangeable for dlrs in convertible preferred stock asked what would happen if the leveraged buyout group which the company did not identify topped his offer between now and the board meeting bilzerian said he expected an opportunity to respond pay n pak gave no details about the buyout group but did say the offer was contingent on financing and on an agrreement regarding management s equity participation bilzerian said it was his understanding that the management particpation was nominal pay n pak fell to arbitrageurs said there was disappointment that neither of the offers topped dlrs we were expecting an offer north of above or dlrs said one arbitrageur the leveraged buyout plan was for dlrs per share in cash and dlrs in pct cumulative preferred stock robert cheadle analyst at montgomery securities said you have to ask yourself why no one in the industry made a bid scott drysdale analyst at birr wilson securities said the company has not made the best strategic moves over the years they have not done the right things at the right time he said and as a result earnings per share have steadily declined since the cts per share in earnings reported for the fiscal year ended in february was lower than s earnings he said earnings totaled mln dlrs on revenue of mln dlrs drysdale said pay n pak has better trained sales people than many competitors but it competes on price even though competitors have lower costs the result is squeezed margins he noted that there have been no other publicly identified bidders stepping forward since the company rejected an earlier bilzerian proposal in mid april another arbitrageur said it might not be too late for another bidder to get in the game he speculated that someone in the same home improvement business might be able to offer a deal for stock that would top both the buyout proposal and bilzerian s plan reuter 
