Icahn Tops Bridgestone, Again, and Increases Bid for Pep Boys

Dec. 21, 2015

Icahn Enterprises L.P. has upped its price to purchase The Pep Boys — Manny, Moe & Jack, but also has indicated the offer won't last forever. The billionaire investor has given the Pep Boys board until Dec. 23, 2015, to close the deal.

On Dec. 18 Icahn offered $16.50 per share, a dollar more than the existing offer from Bridgestone Retail Operations LLC, and a dollar more than Icahn's original offer on Dec. 7.

In an effort to prevent the dealings from dragging on over the holiday season, Icahn's $16.50 offer came with strings. It wanted the board to meet and determine that it's offer is "superior" to the existing Bridgestone offer before midnight on Dec. 20 — and the board complied. It also wants Pep Boys to give Bridgestone notice of the offer, and tell the tire maker it plans to terminate the merger agreement with Bridgestone and enter into an agreement with Icahn by 5 p.m. Dec. 23. The Pep Boys board delivered that notice following its meeting on Dec. 20.

The Icahn offer signed by CEO Keith Cozza says,

"Therefore, unless Pep Boys accepts our proposal by executing a merger agreement with us in the form enclosed herewith at or prior to 8 p.m. New York City time, on Dec. 23, 2015, this proposal will expire and have no further force or effect and may not thereafter be accepted by Pep Boys.

"We look forward to a prompt and favorable reply."