Billionaire romantic financier Carl Icahn Monday lifted his takeover bid for Pep Boys – Manny, Moe Jack, commanding Bridgestone’s Christmas Eve understanding for a automobile services chain.
Marking a latest turn in a back-and-forth corporate duel for Pep Boys (PBY), Icahn Enterprises pronounced it offered $18.50 per share, which values a Philadelphia-based association during somewhat some-more than a $1 billion Icahn had formally signaled final week he was peaceful to pay.
The offer for now bests the $17-a-share offer that Pep Boys concluded to with Bridgestone Retail Operations, a U.S.-based auxiliary of Japan tire builder Bridgestone.
Pep Boys shares rose 6.2% to $18.48 in after-hours trading. The batch sealed down 0.6% during $17.41 in unchanging trade Monday.
Bridgestone did not immediately respond to an email seeking criticism on Icahn’s new bid. Pep Boys pronounced a company had no evident comment.
Icahn’s association pronounced in a Securities and Exchange Commission filing that a new offer represents a negotiated transaction that would not be theme to any due diligence, financing or antitrust conditions.
The filing also criticized a sustenance in the Thursday agreement that would lift a stop price payable by Pep Boys to Bridgestone from $35 million to $39.5 million for certain circumstances, including including a stop to enter a higher offer by a third party. The sustenance “would forestall a truly strong auction,” Icahn Enterprises contended.
The Icahn-controlled financial association also pronounced in a filing it could be peaceful to lift a new $18.50 a share bid for Pep Boys, though won’t do so if a automobile services sequence agrees to any boost of Bridgestone’s stop fee.
Icahn’s conflict to win Pep Boys represents a vital acquisition because he already controls Auto Plus, a opposition automobile use company.
Bridgestone’s bid for Pep Boys represents partial of a devise to enhance a U.S. sell operations. The association operates 2,200 U.S. tire and automobile use centers underneath a Firestone Complete Auto Care, Tires Plus, Hibdon Tires Plus and Wheel Works brands. Additionally, Bridgestone has some-more than 5,000 U.S. dealers and distributors.
Follow USA TODAY contributor Kevin McCoy on Twitter: @kmccoynyc.