	gaf gaf seen raising borg warner bor bid gaf corp set on uiring borg warner corp s valuable plastics business is believed by analysts to be preparing an increased offer for the chicago based company yesterday borg warner said it agreed to be uired for billion dlrs by a company to be formed by merrill lynch capital partners merrill offered dlrs cash per share for pct of borg warner s common stock and a package of cash and securities for the balance borg warner stock rose to i think it s the stock price telling us gaf is coming in with another bid said one analyst who values the company at or dlrs per share gaf has offered dlrs per share it holds pct of borg warner s stock you re in a cat and mouse game on how you re going to up the price obviously nobody wants to pay more than you have to i think gaf is looking at the company the way we re looking at it that it s worth more pershing and co analyst richard henderson said henderson estimated it is worth abouth dlrs per share gaf has only said it was reviewing the situation merrill lynch officials did not return phone calls analysts have said they believe gaf chairman samuel heyman sought borg warner because of its chemicals and plastics business the rigid plastics are used in such things as telephones computer terminals and appliances where the heck can you buy a world class chemical operation these days said henderson he s heyman s got the bucks he s a heavy hitter and he does not like to get pushed around said henderson gaf a roofing and chemicals concern attempted a takeover of the much larger union carbide corp two years ago while gaf did not win the company it made a substantial gain on its investment in carbide analysts said gaf already has a large profit built into its borg warner holdings they said even if gaf raises its offer and does not succeed a higher bid from another company would give gaf millions of dollars in profits on its stock it s a win win situation said one analyst one analyst speculated an offer from gaf would be forthcoming shortly i think we are finally down to the final paragraph in this book he said borg warner s other businesses include automotive parts protective services which includes wells fargo security guards and chilton corp a credit rating service charles rose an oppenheimer and co analyst who follows gaf said if gaf were to sell into the merrill lynch offer it would realize about mln dlrs net profit or about per share i think there s a probability he goes up in price said rose rose said however he could not really predict what heyman would do sam s a low risk high return player is he trying to build a major industrial chemical enterprise or is he trying to be an investment bank rose said analysts said borg warner s chemical business would add earnings momentum to gaf i worked out that paying as much as dlrs per share would still be additive to gaf in time if they sold off most of the non chemical facilities said john henry of e f hutton borg warner s chemical and plastics business provided operating profits of mln dlrs on revenues of billion dlrs total operating profits were mln dlrs and net earnings were mln dlrs for the borg chemical business is great said rose adding its only u s competitors are monsanto co mct and dow chemical co dow reuter 
