CONRAC <CAX> SOARS FOLLOWING MARK IV <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 <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 <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.