Pep Boys considering Icahn proposal

Pep Boys, which agreed to be sold to Bridgestone in October, said it is considering a competing offer from Carl Icahn's investment firm that is worth $2 million more.



The board of directors of Pep Boys-Manny Moe & Jack announced that the proposal this week from Icahn Enterprises to acquire Pep Boys for $15.50 per share in cash constitutes a "Superior Proposal" as defined in the company's agreement and plan of merger with Bridgestone Retail Operations.



Bridgestone, a Japan-based tires and auto service company, has until Friday to increase its offer or, Pep Boys said, it will take Icahn's deal. Pep Boys said it notified Bridgestone of its decision.



According to the Associated Press, Bridgestone confirmed in a statement Wednesday that it received the notice from Pep Boys and that any further decisions will be made based on what makes financial sense for the company. Bridgestone said it still believes its buyout of Pep Boys "is good for the combined business."



As previously announced on Oct. 26, Pep Boys entered into the Bridgestone agreement pursuant to which Bridgestone commenced, on Nov. 16, a tender offer for all outstanding shares of Pep Boys at $15 per share in cash.



Auto parts retailer Pep Boys has over 7,500 service bays in over 800 locations in 35 states and Puerto Rico.