December 30, 2015 / 12:11 AM / in 2 years

Bridgestone pulls out of bidding war for Pep Boys

(Reuters) - Japanese tire maker Bridgestone Corp (5108.T) said it would not counter Carl Icahn’s raised offer to buy Pep Boys - Manny Moe & Jack PBY.N, ending a bidding war for the U.S. auto parts retailer.

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

Icahn sweetened his offer for Pep Boys for the second time to $18.50 per share on Monday, after Bridgestone raised its bid by $1.50 to $17 per share on Dec. 24.

Pep Boys said on Monday Icahn’s latest offer was superior to the deal it accepted from Bridgestone, and moved to terminate its agreement with the Japanese company.

Icahn, whose latest bid values Pep Boys at about $1 billion, had reported a 12.12 percent stake in Pep Boys earlier in December and said the company’s retail automotive parts business would be a perfect fit for Auto Plus, a competitor he owns.

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.

(This story corrects RIC for Bridgestone in the first paragraph.)

Reporting by Ramkumar Iyer in Bengaluru; Editing by Anil D'Silva

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