Icahn's latest bid of $18.50 per share on Monday values Pep Boys
at about $1 billion, while Bridgestone's previous offer of $17
per share valued the company at about $947 million.
Pep Boys said that its board has delivered a notice to
Bridgestone to terminate their previous agreement.
Icahn Enterprises said it would be willing to bid in excess of
$18.50 per share for Pep Boys unless Pep Boys increases
Bridgestone's termination fee of $39.5 million.
Icahn Enterprises' offer is not subject to any due diligence,
financing or antitrust conditions.
Icahn and Bridgestone have been in a bidding war for Pep Boys.
Monday's offer was Icahn's third bid for the company including
two moves to sweeten the deal this month
Bridgestone and Icahn Enterprise were not immediately available
The auto parts retailer has been on the block since June, when
it said it was considering selling itself as part of a strategic
Bridgestone had said on Oct 26 that it would buy Pep Boys to
boost its retail network by more than a third in the United
Icahn had reported a 12.12 percent stake in Pep Boys earlier in
December and said the company's retail automotive parts business
would be a perfect fit for Auto Plus, a competitor he owns.
Pep Boys stock jumped to 18.50 in after-hours trading from a
close of 17.39.
(Reporting by Ramkumar Iyer and Parikshit Mishra in Bengaluru;
Editing by Anil D'Silva and Cynthia Osterman)
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