TALKING POINT/PUROLATOR COURIER &lt;PCC>

  Emery Air Freight Corp topped a
  leveraged buyout offer for Purolator Courier Corp by about 40
  mln dlrs, but Wall Street is reacting as though another offer
  may surface.
      Purolator's stock climbed 5-3/8 today, to 40-1/8, 1/4 over
  Emery's 40 dlr per share offer. Emery topped a 35 dlr per share
  or 268 mln dlr offer from E.F. Hutton LBO Inc.
      Some analysts said the latest, 306 mln dlr offer for
  Purolator exceeded their expectations.
      Several analysts previously had said they saw takeover
  values for the package delivery company in the 35 dlr per share
  range. At least one, however, estimated the company could be
  taken over in a range of 38 to 42 dlrs per share.
      Analysts today would not venture to say whether another
  offer could be made, but some arbitragers still held to the
  belief that the bidding could go higher.
      "They have no choice to seek out the best possible offer.
  Emery has shown the courage to go forth," said one arbitrager,
  who speculated other courier companies may also emerge as
  bidders.
      "It makes sense," said James Parker of Robinson Humphrey.
  But "It won't make out as well as they think. They won't get a
  100 pct of the synergies."
      Analysts said the acquisition could cost Emery earnings in
  the short term, but long term, after eliminating redundancies
  and selling other Purolator assets, it should boost Emery's
  profitability.
      Parker said a combined Purolator and Emery would rival
  United Parcel Service as the second largest U.S. package
  delivery company after Federal Express Corp &lt;FDX>, which has 47
  pct of the market.
      Parker speculated that the combined Emery-Purolator would
  have about 24 pct of the six to seven billion dlr delivery
  business.
      "This will make Emery a bigger factor in the light weight
  (delivery) business, but it will not make them a power house,"
  said Douglas Arthur of Kidder, Peabody and Co.
      Purolator today declined comment on the Emery offer, and
  its chairman Nicholas Brady did not return a phone call.
      E.F.Hutton LBO also declined comment on the Emery offer,
  but said it extended the expiration and withdrawal period on
  its offer to April six at midnight from today at midnight EST.
      One analyst speculated the extension makes it more likely
  Hutton will attempt another offer. However, he was skeptical a
  company outside the package delivery industry would want to
  outbid 40 dlrs per share because it would not have the same 
  synergies as a courier company.
      Since Purolator agreed in late February to a buyout by some
  of its management and the E.F. Hutton Group &lt;EFH> subsidiary,
  speculation has arisen that more bidding was to come.
      The buyout was surrounded by controversy since a Purolator
  board member, Doresy Gardner resigned in March. Gardner said he
  believed a better offer could be made by another entity.
      A spokesman for Gardner today said the former director had
  no contact with Emery, nor did he have any other buyers lined
  up for Purolator.
      Purolator's deal with Hutton was also called into question
  by a shareholder suit filed earlier this week, which attempted
  to stop the tender offer to allow another bidder to come forth.
  Hearings in a New York state court were delayed until Monday.
      Arbitragers had said they believed the Hutton offer could
  be bettered because the Wall Street firm was not planning to
  keep its cash tied up in Purolator. Hutton is providing a 279
  mln dlr "bridge" loan that would later be replaced with other
  debt. Hutton would maintain a majority interest in Purolator.
      Hutton sources have said the firm was in fact facing risk n
  its investment since it did not know when it could reclaim its
  279 mln dlr loan.
      Emery last year lost 5.4 mln dlrs on revenues of 887.5 mln
  dlrs. Purolator lost 57.6 mln dlrs on 841.4 mln dlrs in
  revenues.
  

