Pep Boys Accepts Higher Bridgestone Offer After Icahn Counterbidby
Pep Boys accepted a sweetened, $15.50-a-share bid from Bridgestone Corp., which matched a counteroffer from billionaire investor Carl Icahn.
The revised offer represents a total price of about $863 million, up $28 million, according to a statement Friday.
Bridgestone, based in Tokyo, plans to use Pep Boys to push deeper into the U.S. and create the world’s largest chain of tire and automotive centers. Bridgestone had previously agreed to buy Pep Boys for about $835 million, or $15 a share, in October.
Traders have been betting that Pep Boys ultimately will sell for a price higher than the $15.50-a-share bid. Shares of the company, whose full name is Pep Boys -- Manny, Moe & Jack, closed at $16.34 in New York on Friday.
The Icahn deal would have combined Pep Boys’ retail business with Auto Plus, an aftermarket parts supplier he acquired this year from Canada’s Uni-Select Inc. for about $340 million. The company aims to be one of the largest automotive aftermarket companies in the U.S. in the next five years, according to its website.