CHEMLAWN <CHEM> RISES ON HOPES FOR HIGHER BIDS ChemLawn Corp <CHEM> could attract a higher bid than the 27 dlrs per share offered by Waste Management Inc <WNX>, Wall Street arbitrageurs said. Shares of ChemLawn shot up 11-5/8 to 29-3/8 in over-the-counter- trading with 3.8 mln of the company's 10.1 mln shares changing hands by late afternoon. "This company could go for 10 times cash flow or 30 dlrs, maybe 32 dollars depending on whether there is a competing bidder," an arbitrageur said. Waste Management's tender offer, announced before the opening today, expires March 25. "This is totally by surprise," said Debra Strohmaier, a ChemLawn spokeswoman. The company's board held a regularly scheduled meeting today and was discussing the Waste Management announcement. She said a statement was expected but it was not certain when it would be ready. She was unable to say if there had been any prior contact between Waste Management and ChemLawn officials. "I think they will resist it," said Elliott Schlang, analyst at Prescott, Ball and Turben Inc. "Any company that doesn't like a surprise attack would." Arbitrageurs pointed out it is difficult to resist tender offers for any and all shares for cash. Schlang said ChemLawn could try to find a white knight if does not want to be acquired by Waste Management. Analyst Rosemarie Morbelli of Ingalls and Snyder said ServiceMaster Companies L.P. <SVM> or Rollins Inc <ROL> were examples of companies that could be interested. ChemLawn, with about two mln customers, is the largest U.S. company involved in application of fertilizers, pesticides and herbicides on lawns. Waste Management is involved in removal of wastes. Schlang said ChemLawn's customer base could be valuable to another company that wants to capitalize on a strong residential and commercial distribution system. Both Schlang and Morbelli noted that high growth rates had catapulted ChemLawn's share price into the mid-30's in 1983 but the stock languished as the rate of growth slowed. Schlang said the company's profits are concentrated in the fourth quarter. In 1986 ChemLawn earned 1.19 dlrs per share for the full year, and 2.58 dlrs in the fourth quarter. Morbelli noted ChemLawn competes with thousands of individual entrepreuers who offer lawn and garden care sevice.