Pep Boys received Icahn’s takeover bid for $16.50 a share Friday and made the determination on Sunday, the company said.
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Icahn Enterprises LP has raised its offer for control of the auto parts retailer and service provider, becoming the “superior proposal” over Bridgestone America’s bid. However, a helpful “acquisitions and mergers guy” (that is his official title) pointed out a flaw in Ulrich’s interpretation of Article I, Section 1.6 of Pep Boys’ Dec. 14, 2015, SEC Form 8-K filing.
Pep Boys notified Bridgestone on December 20 of its board’s determination and intention to effect a change of recommendation and to terminate the Bridgestone agreement.
Pep Boys said Bridgestone would have until 5.00 p.m. ET on Wednesday to make further proposals. However, Pep Boys said its board of directors continues to recommend the deal with Bridgestone and was not making any recommendation on Icahn’s offer at this time.
Bridgestone announced its original deal with Pep Boys – for $15 per share – in late October and began a tender offer about five weeks ago.
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Pep Boys operates more than 800 retail locations with 7,500-plus service bays in 35 states and Puerto Rico, including 234 tire-centric Service & Tire stores.
