TALKING POINT/PUROLATOR COURIER <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 <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 <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.