Billionaire investor Carl Icahn sweetened his offer to acquire Pep Boys with a promise to top any bid from Bridgestone Corp. up to about $1.01 billion.
Icahn’s new offer includes a provision that would automatically beat any Bridgestone bid by 10 cents a share, up to a maximum of $18.10 a share, Philadelphia-based Pep Boys said Wednesday. Pep Boys’ board has determined that Icahn’s offer is superior, giving Bridgestone until late Thursday to respond with a new proposal.
The proposal will test whether Tokyo-based Bridgestone is willing to boost its offer beyond that threshold to create the world’s largest chain of tire and automotive centers. Icahn is looking to add Pep Boys’ 800 locations to the Auto Plus chain that he acquired earlier this year.