GAF Corp said it is exploring itsoptions in response to Merrill Lynch Capital Partners' 4.23
billion dlr offer for Borg-Warner Corp, and it has asked for
all information that was supplied to Merrill Lynch.
    A GAF spokesman said the company asked for the information
in order to enable GAF to fully evaluate its alternatives.
    The spokesman also confirmed that GAF did raise its bid to
48 dlrs cash from 46 dlrs per share on Friday.
    Merrill is offering 48.50 dlrs per share cash for 89 pct of
Borg-Warner, and a package of cash and securities for the
balance.
    The transaction with Merrill Lynch will take Borg-Warner
private in the form of a leveraged buyout. Merrill Lynch does
not intend to sell Borg-Warner assets, but it may be forced to
do so in financing the deal, said sources familiar with the
transaction.
     Borg-Warner has said its management is not a participant
in the transaction, but managers will retain their positions.
    The investors involved with Merrill include pension funds,
insurance companies and other institutional investors, sources
said.
    Analysts believe GAF, which owns 19.9 pct of Borg-Warner,
will raise its offer.
    That speculation drove Borg-warner stock up 1-3/8 to 49-5/8
in heavy trading. GAF closed at 49-5/8, off 3/4.
 
 Reuter
