BILZERIAN PREPARED TO TENDER FOR PAY N'PAK <PNP>
  Investor Paul Bilzerian said if Pay N'
  Pak Stores Inc enters into a merger accord with him he will
  immediately begin a tender offer for 7.5 mln shares for 20 dlrs
  per share in cash.
      Bilzerian told Reuters he believes his offer is superior to
  a leveraged buyout proposal disclosed in an announcement by the
  company this morning.
      The company said it is evaluating both proposals.
  Bilizerian said he was optimistic his offer will be accepted at
  a meeting of the board of directors Wednesday. Officials of Pay
  N' Pak did were not immediately available for comment.
    
      Bilzerian said he has a pool of 150 mln dlrs raised by
  Shearson Lehman Brothers Inc available for the tender and "we
  may add a bank to that."
      "We've submitted an agreement we're prepared to sign," he
  said. Shares not accepted in Bilzerian's tender would be
  exchangeable for 20 dlrs in convertible preferred stock.
      Asked what would happen if the leveraged buyout group,
  which the company did not identify, topped his offer between
  now and the board meeting, Bilzerian said he expected an
  opportunity to respond.
      Pay N' Pak gave no details about the buyout group, but did
  say the offer was contingent on financing and on an agrreement
  regarding management's equity participation.
      Bilzerian said it was his understanding that the management
  particpation was "nominal."
      Pay N' Pak fell 1-1/2 to 19. Arbitrageurs said there was
  disappointment that neither of the offers topped 20 dlrs.
      "We were expecting an offer north of (above) 21 or 22
  dlrs," said one arbitrageur. The leveraged buyout plan was for
  17.50 dlrs per share in cash and 2.50 dlrs in 13-1/2 pct
  cumulative preferred stock.
   
      Robert Cheadle, analyst at Montgomery Securities, said "you
  have to ask yourself why no one in the industry made a bid."
      Scott Drysdale, analyst at Birr Wilson Securities, said the
  company has not made the best strategic moves over the years.
  "They have not done the right things at the right time," he
  said, and as a result earnings per share have steadily declined
  since 1984. The 57 cts per share in earnings reported for the
  fiscal year ended in February was lower than 1978's earnings,
  he said. Earnings totaled 5.7 mln dlrs on revenue of 398.4 mln
  dlrs.
      Drysdale said Pay N' Pak has better trained sales people
  than many competitors, but it competes on price even though
  competitors have lower costs. The result is squeezed margins.
  He noted that there have been no other publicly identified
  bidders stepping forward since the company rejected an earlier
  Bilzerian proposal in mid-April.
      Another arbitrageur said it might not be too late for
  another bidder to get in the game. He speculated that someone
  in the same home improvement business might be able to offer a
  deal for stock that would top both the buyout proposal and
  Bilzerian's plan.