NEW YORK, N.Y. – Pep Boys on Monday called a revised offer from billionaire Carl Icahn a “superior” bid, just days after the auto parts seller accepted a sweetened deal from tire company Bridgestone.
Icahn Enterprises offered $16.50 for each share of Pep Boys on Friday, in a deal worth about $893 million. Icahn Enterprises previous offered $15.50 per share, and Bridgestone matched that offer shortly after.
Pep Boys said Monday that it now prefers to take the offer from Icahn Enterprises and that Tokyo’s Bridgestone Corp. has until Wednesday to up its bid.
In a printed statement, Bridgestone said it still believes its proposed buyout is “good for the combined business.” It declined to comment further.
Pep Boys – Manny, Moe & Jack, based in Philadelphia, operates about 800 locations selling auto parts and offering vehicle maintenance.
Shares of Pep Boys jumped $1.04, or 6.6 per cent, to $16.80 in afternoon trading.