A recent proposal for the purchase of The Pep Boys – Manny, Moe & Jack, may lead to a bidding war for the company. Pep Boy’s board of directors announced that a proposal from Icahn Enterprises to acquire Pep Boys for $15.50 a share, could be defined as a “Superior Proposal” as defined in the company’s agreement and plan of merger with Bridgestone Retail Operations.
The determination by the board, and legal teams, allows Pep Boys to take certain actions in accordance with procedures set forth in the Bridgestone agreement, to further consider the Icahn proposal. The determination, however, doesn’t allow Pep Boys to terminate its Bridgestone agreement or enter into a transaction with Icahn, Pep Boys said in a release.
The board of directors for Pep Boys has not changed its recommendation with respect to the Bridgestone transaction, nor is it making any recommendation with respect to the Icahn proposal.
Bridgestone entered into an agreement in October to purchase Pep Boys for $15 a share.