With a simple one sentence statement issued late on Dec. 29, Bridgestone Americas put to an end the ping pong match it found itself in with so-called shareholder activist Carl Icahn over control of struggling auto part, service and tire retailer Pep Boys.
“Bridgestone Americas Inc. today announced that Bridgestone Retail Operations, a wholly owned subsidiary of Bridgestone, will not present a counter offer to acquire The Pep Boys – Manny, Moe & Jack, in response to the most recent proposal from Icahn Enterprises of $18.50 per share,” read the statement.
At $18.50 per share, Icahn, who already holds a 12% stake in Pep Boys but doesn’t have the infrastructure most feel is necessary to revive the moribund business, is paying a $3.50 premium over Bridgestone’s original $15 per share offer, made in October.
The tiremaker and Icahn have battled back and forth countering each other’s offer for the Philadelphia-based Pep Boys, which has been on the market for about two years, but had no takers until Bridgestone stepped in with an offer to take over the 800-plus store chain.
Icahn’s latest bid of $18.50 topped Bridgestone’s previous best bid of $17 per share.
