Investor Carl Icahn sweetens offer for Pep Boys, topping Bridgestone's bid

NEW YORK, N.Y. – Activist investor Carl Icahn has fired another salvo in his bidding war with Bridgestone for auto parts chain Pep Boys.

On Monday, Pep Boys said Icahn had sweetened his offer for the Philadelphia company to $18.50 a share in cash, or about $1 billion. That’s up from his previous offer of $16.50 a share.

Icahn’s latest offer topped tire company Bridgestone’s recently raised proposal of $17 a share, which had in turn topped an earlier bid from Icahn.

Shares in Pep Boys – Manny, Moe & Jack jumped more than 6 per cent in after-hours trading to $18.50.

Pep Boys has about 800 outlets selling auto parts and offering vehicle maintenance. It said it had informed Tokyo-based Bridgestone Corp. of Icahn’s boosted offer.