Icahn to Acquire Pep Boys
CBJ — Japanese tire maker Bridgestone will not make a counter offer to activist investor Carl Icahn’s top bid to purchase Pep Boys – Manny Moe & Jack, ending a bidding war for the U.S. auto parts retailer.
Icahn (pictured) sweetened his offer for Pep Boys for the second time to $18.50 per share, after Bridgestone raised its bid by $1.50 to $17 per share on Dec. 24.
Pep Boys says Icahn’s latest offer was superior to the deal it accepted from Bridgestone by about $1 billion, and moved to terminate its agreement with the Japanese company.
The auto parts retailer has been on the block since June, when it said it was considering selling itself as part of a strategic review.
Bridgestone had said on Oct 26 that it would buy Pep Boys to boost its retail network by more than a third in the United States.