Bridgestone pulls out of bidding war for Pep Boys
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Japanese tire maker Bridgestone Corp said it would not counter Carl Icahn’s raised offer to buy Pep Boys – Manny Moe & Jack, ending a bidding war for the U.S. auto parts retailer.
Icahn sweetened his offer for Pep Boys for the second time to $18.50 per share on Monday, after Bridgestone raised its bid by $1.50 to $17 per share on Dec. 24.
Pep Boys said on Monday Icahn’s latest offer was superior to the deal it accepted from Bridgestone, and moved to terminate its agreement with the Japanese company.
Icahn, whose latest bid values Pep Boys at about $1 billion, 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.
The auto parts retailer has been on the block since June, when it said it was considering selling itself as part of a strategic review.
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 States.
Questions & Answers
Q.Why did Bridgestone withdraw its bid for Pep Boys?
Why did Bridgestone withdraw its bid for Pep Boys?
Bridgestone stated it would not counter Carl Icahn’s raised offer for Pep Boys. The retailer itself deemed Icahn's latest bid superior to the agreement it had with Bridgestone.
Q.How much was Carl Icahn's final offer for Pep Boys worth?
How much was Carl Icahn's final offer for Pep Boys worth?
Carl Icahn's final offer was $18.50 per share. This bid valued Pep Boys at approximately $1 billion in total, according to the article.
Q.What was Bridgestone's original motivation for wanting to acquire Pep Boys?
What was Bridgestone's original motivation for wanting to acquire Pep Boys?
Bridgestone intended to buy Pep Boys to significantly expand its retail network in the United States. They aimed to boost their network by more than a third through this acquisition.
Q.When did Pep Boys first indicate it was looking to sell the company?
When did Pep Boys first indicate it was looking to sell the company?
Pep Boys announced it was considering selling itself as part of a strategic review back in June. The company has therefore been on the block since that time.
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