Pep Boys to Further Consider Icahn Proposal

Pep Boys - Manny Moe & Jack on Tuesday said it would further consider Icahn Enterprises's proposal to pay $15.50 per share for the firm, noting that it is likely superior to its prior merger deal with Bridgestone Corp.

Pep Boys said that it would further consider the Icahn offer, but that it hasn't changed its recommendation toward completing the Bridgestone deal.

Pep Boys reached a deal in October to be acquired by Japanese tire company Bridgestone for $15 a share, or about $835 million. On Monday, Icahn offered pay to pay $15.50 a share, which values the firm at about $863 million.

The Bridgestone deal also includes a potential breakup fee of $35 million.

Pep Boys said Icahn's proposal "would reasonably be expected" to count as a so-called superior proposal. According to filings, this designation allows Pep Boys to furnish nonpublic information to, and engage in negotiations with, Icahn Enterprises.

In a statement Monday, Bridgestone Americas said it made "swift and certain progress" toward completing the acquisition and "quickly received" regulatory and antitrust approval. Bridgestone said it is "now in the advantageous position of completing the tender offer and acquisition in approximately 30 days."

Pep Boys, which are up 64% this year, fell 1.31% in premarket trading. Bridgestone fell 0.6% in trading in Japan.

Write to Austen Hufford at [e-mail]

(END) Dow Jones Newswires

December 08, 2015 09:55 ET (14:55 GMT)

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