Pep Boys moves to terminate Bridgestone deal on higher buyout offer

The bidding war for Pep Boys continues with activist investor Carl Icahn increasing his bid for the auto parts chain.



Pep Boys – Manny, Mo & Jack on Tuesday said its board has delivered a notice to Bridgestone to terminate the agreement the chain made with the company last week. The action comes on the heels of a bid on Monday by Icahn Enterprises of $18.50 per share, up from its previous offer of $16.50, versus Bridgestone's offer of $17 per share. Icahn’s latest offer values the chain at about $1 billion.



In a statement, Pep Boys said that the most recent bid by Icahn was superior. It gave Bridgestone until 5 p.m. EST on Dec. 31 to make another offer or terminate their agreement.



The bidding for Pep Boys started in late October, when Bridgestone made an offer for $15 per share.