The Pep Boys — Manny, Moe & Jack plans to cancel its merger agreement with Bridgestone Retail Operations LLC this week, and instead accept the higher-priced offer from billionaire investor Carl Icahn.
Pep Boys says its board of directors determined that Icahn’s offer of $15.50 per share is in fact “superior” to that of tire maker Bridgestone, which had offered $15 per share. Pep Boys says its board plans to change its recommendation from pursuing the Bridgestone deal to Icahn by 5 p.m. on Dec. 11, 2015.
According to a Pep Boys press release, Bridgestone has the right to make additional proposals, but Pep Boys cannot take any action until the end of the three-day period.
In a statement, Bridgestone says, "We continue to believe that the joining of Bridgestone and Pep Boys, with nearly 200 years of experience in the American automotive aftermarket industry between us, is good for the combined business, offers more diverse career opportunities for employees across a larger company and provides customers with a broad range of the world-class products and services they want, when and where they need them. Any further decisions will be made based on what continues to make business and financial sense for Bridgestone and aligns with our long-term growth strategy."
On Oct. 26 Bridgestone and Pep Boys had jointly announced the acquisition. On Dec. 4 Icahn stepped in with his own offer.
