GAF <GAF> PLANS NO CHANGES IF OFFER ACCEPTED
GAF Corp chairman Samuel Heyman told
Reuters he did not foresee major changes in Borg-Warner <BOR>
if GAF's 46 dlr-per-share offer to acquire Borg-Warner is
successful.
    "We have great respect for Borg-Warner mangagement," Heyman
said, following a speech at the American Institute of Chemical
Engineers annual meeting. "We don't have any particular changes
in mind."
    Earlier today, GAF announced that a 3.16-billion-dlr-offer
was presented to the board of directors of the Chicago-based
company.
    Last week, GAF had purchased additional shares of the
company for 40-1/8 dlrs, increasing its stake in Borg-Warner to
19.9 pct.
    In 1985, GAF made an unsuccessful effort to acquire Union
Carbide Corp for five billion dlrs, and has since expressed an
interest in acquiring a chemical company that would complement
its own chemical business.
    When asked whether GAF would consider selling the
non-chemical assets of Borg-Warner if its takeover offer is
accepted, Heyman declined to comment.
    He also refused to say whether GAF would consider
increasing its the dollar value of its takeover offer if the
initial proposal is rejected.
    Heyman emphasized that he considered the GAF offer to
Borg-Warner to be a friendly one.
    "We think we made a fair offer that is good for Borg-Warner
management and good for its shareholders," Heyman said.
     In his speech, Heyman said he feared too many chemical
companies were attempting to specialize in the same high margin
niche products.
    He said they were turning their backs on core commodity
chemical businesses. 
    Heyman said the chemical industry has taken a total of
seven billion dlrs in pre-tax writeoffs during the past two
years to trim balance sheets.
    He predicted that the U.S. chemical industry, which
reported a total of 13 billion dlrs in 1986 profits, would see
a 20 pct gain in earnings this year because of increasing
exports, cheaper feedstock costs and the weakened U.S. dlr.
 Reuter
