Pep Boys Rises After Saying Board Will Consider Sale, MergerPatrick Ralph
Pep Boys - Manny, Moe & Jack rose as the auto-parts retailer said its board will review options including a sale or merger after receiving inquiries about a possible transaction.
There is no timetable for the process and no decision has been made to pursue a deal, the Philadelphia-based company said in a statement Tuesday. Pep Boys didn’t give details about the inquiries.
The shares climbed 2.4 percent to $12.45 at 9:40 a.m. in New York after gaining as much as 3.8 percent. The stock advanced 24 percent this year through Monday, as the Russell 2000 Index rose 3.5 percent.
Pep Boys has been pressured by investor Mario Gabelli and said on June 11 that it agreed to nominate three directors recommended by him. The company’s stock surged 16 percent on May 20 after the Wall Street Journal reported that Pep Boys was being evaluated by potential acquirers.
Pep Boys said it hired Rothschild Inc. as financial adviser for the review and Morgan, Lewis & Bockius LLP for legal advice.
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