CONRAC &lt;CAX> SOARS FOLLOWING MARK IV &lt;IV> BID

  Heavy buying by speculators boosted
  Conrac Corp 7-7/8 to 29, higher than a 25-dlr-per-share cash
  tender offer announced by Mark IV Industries Inc &lt;IV>.
      "It's a case of ChemLawn euphoria," said one arbitrageur,
  referring to a recent hostile tender that began at 27 dlrs per
  share and ended when ChemLawn Corp &lt;CHEM> found a white knight
  willing to bid 36.50 dlrs.
      For Conrac, the arbitrageur said, 28 dlrs per share seemed
  like an "appropriate price." Another said "it's too early to
  project the outcome."
      "The market is speaking for itself and saying the 25 dlr
  offer is inadequate," the second arbitrageur said. But he added
  it was hard to make a case for Conrac being worth much more
  than the 29 dlrs where the shares traded today.
      He noted the stock recently sold in the high teens and
  there could be a downward risk of 10 dlrs or more if Conrac is
  able to thwart Mark IV.
      Conrac urged shareholders to take no action while its board
  studies the offer and confers with advisers. Conrac said it
  would make a recommendation by April 17.
      A third arbitrageur noted Mark IV had been involved in
  several takeovers previously and has proven itself to be a
  determined bidder. "They're not beginners," he said.
      Another said Conrac might have trouble if it tried to find
  another buyer. "It's a hodge-podge of non-related businesses,"
  he said. "There is only a small universe of people who would
  want to own the company as it's presently structured."
      Conrac is involved in video displays, computer software,
  aircraft instruments, telephone answering machines, welding
  equipment and other products.
      "I'm telling retail clients to sell and leave the rest for
  those who can take the risk," said Rudolph Hokanson, analyst at
  Milwaukee Co.
      He called the 25-dlr offer by Mark IV "fair value but on
  the low side." "I don't think management was looking for a
  buyer in any way before this offer," he said.
      Hokanson said Conrac has conservative finances and has
  developed a reputation for quality products that serve niche
  markets. He said management has done a good job of turning
  around the telephone answering machine business.
  

