BEST OFFER : $95 Million

The Lakers have made what figures to be their best and final offer to Shaquille O’Neal, sources said Friday, a seven-year, $95.5-million package with an out clause after the third season that would allow the free-agent center the chance to recoup whatever money he loses by not re-signing with the Orlando Magic.

No decision from O’Neal is imminent, so the Lakers almost certainly will have to wait until at least early next week before getting a definitive response, all the while growing more uneasy at the possibility of losing out on their No. 1 target and several of the secondary options.

One favorite from the “B” list, Dale Davis, could very well be back with the Indiana Pacers by Sunday night unless L.A. makes a serious move in his direction before then.

This comes as the agent for O’Neal, Leonard Armato, reaffirms a previous statement that teams have until next Friday to make bids, meaning that a resolution before then is also very unlikely.

“I wouldn’t look for that,” Armato said.

O’Neal and Armato continue to say Orlando is the front-runner, and the Magic has the obvious advantage of being able to pay O’Neal without regard to the salary cap as its own free agent. But the player and agent also appear to be giving the Lakers enough encouraging news to hang in.

In the meantime, the Lakers have made a proposal in which O’Neal will start at $8.53 million this season and escalate to $18.76 in 2002-03, an average of $13.64 million annually. They are also willing to allow him to become a free agent again in the summer of 1999, at which time the Lakers would be able to tear up the original contract and negotiate a new deal with no restrictions from the cap and, in theory, make up whatever money O’Neal loses now.

The $95.5-million offer is telling in that it confirms the Lakers have no intention of renouncing the rights to Elden Campbell. That cuts into additional funds that could be used to lure O’Neal, but, according to several insiders, won’t be an obstacle in landing the superstar center because he does not want to play for a gutted team, even if it was taken apart for the sake of his bank account.

For the Lakers, having made what they feel is a very good offer, the waiting is the hardest part. For O’Neal, however, there is no way around the timetable.

“There’s two forces that are working against each other,” Armato said. “One force is the desire to reach an agreement expeditiously. The other contravening force is that he is playing for the Dream Team and playing hard all the time in games or practices while also traveling some. So a lot of his focus is on the Olympics. He wants to give that the attention it deserves.”

The Magic, which also has to concern itself with re-signing Horace Grant, has also made a contract offer to O’Neal, the details of which are not known but surely will surpass the Lakers’ yearly average. Team officials and Armato spoke at length Friday and probably will hold more discussions today.

As for Davis, an inside bruiser who averaged 9.1 rebounds and shot 55.8% last season while also providing defense, he had been contacted by nine teams as of Friday evening. He is likely to return to the Pacers, maybe finalizing a deal as soon as today, but the Lakers have definitely caught his eye.

“I can truthfully say that the Lakers are the only team Dale might consider signing with other than the Pacers,” said his agent, Steve Kauffman. “Unfortunately, I don’t know if it can happen because I don’t think Dale wants to wait for the Shaquille situation to be resolved.”