, Columnist
Icahn Pumps Up Pep Boys
He could negotiate with Bridgestone so both get what they want from the imperfect target.
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Pep Boys, the chain of shops for car parts and maintenance work, agreed in October to sell itself to Bridgestone for $15 a share in cash. Little did investors know at the time that Bridgestone, the Japanese tire maker, was one of several acquirers to take a hard look at Pep Boys and that at least one of them -- Carl Icahn, the king of hostile deals -- would soon resurface to shake things up.
On Monday, the billionaire corporate-raider-turned-activist-investor bested Bridgestone's offer with his own $15.50-a-share bid. That's after he disclosed a 12 percent stake Friday evening. Pep Boys' stock traded north of $16, for a market value of about $870 million, as some investors held out hope for a bidding war.