Pep Boys says Icahn offer is superior, moves to terminate Bridgestone deal

Tue Dec 29, 2015 6:40pm EST
 
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By Ramkumar Iyer and Parikshit Mishra

(Reuters) - Pep Boys-Manny Moe & Jack PBY.N said its board determined activist investor Carl Icahn's latest buyout offer was superior to the deal it accepted from Bridgestone Corp (5108.T: Quote), and the U.S. auto parts retailer moved to terminate the Bridgestone agreement.

Icahn's latest bid of $18.50 per share on Monday values Pep Boys at about $1 billion, while Bridgestone's previous offer of $17 per share valued the company at about $947 million.

Pep Boys said that its board has delivered a notice to Bridgestone to terminate their previous agreement.

Icahn Enterprises said it would be willing to bid in excess of $18.50 per share for Pep Boys unless Pep Boys increases Bridgestone's termination fee of $39.5 million. (1.usa.gov/1IzVL8b)

Icahn Enterprises' offer is not subject to any due diligence, financing or antitrust conditions.

Icahn and Bridgestone have been in a bidding war for Pep Boys. Monday's offer was Icahn's third bid for the company including two moves to sweeten the deal this month

Bridgestone and Icahn Enterprise were not immediately available for comment.

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.   Continued...

 
A Pep Boys auto parts store is shown in Encinitas, California December 8, 2015.  REUTERS/Mike Blake