Icahn Raises Pep Boys Bid, Again
A week after Carl Icahn said he’d be willing to bid up to $1 billion for Pep Boys, the Philly-based auto parts retailer, he’s done just that.
Reuters reports that on Monday, Icahn raised his bid for the company to $18.50 a share — totaling $1 billion — to beat the best competing bid of $17 a share by Bridgestone, a Japanese-based company that’s been attempting since October to buy Pep Boys. That attempt has sparked a bidding war between Icahn and Bridgestone in recent weeks.
Bloomberg Business reports that Bridgestone will decide within three business days how to respond. But Icahn’s company has suggested it is willing to raise the bid even further.
Why? Bridgestone would be in position to greatly expand their own businesses by acquiring Pep Boys and its 800 retail outlets. Bridgestone has 2,200 of its own outlets in the U.S., Yahoo! reports, while Icahn’s Auto Plus network has 2,300 stores.
Also in the mix: America’s car fleet is aging rapidly, Bloomberg reports, making car owners more reliant on repairs and replacement parts to keep their vehicles running.
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