Skip to main content
Sister Publication Links
  • Automotive News
  • Rubber News
  • European Rubber Journal
Subscribe
  • Login
  • Register
  • Subscribe
  • Current Issue
  • HUMANITARIAN
  • News
    • TIRE MAKERS
    • COMMERCIAL TIRE
    • GOVERNMENT & LAW
    • MERGERS & ACQUISITIONS
    • BEST PLACES TO WORK
    • OBITUARIES
    • OPINION
    • MID YEAR REPORT
    • SERVICE ZONE
  • ADAS
  • Data
    • DATA STORE
  • Custom
    • SPONSORED CONTENT
  • Resources
    • Events
    • DIRECTORY
    • CLASSIFIEDS
    • SHOP FLOOR
    • AWARDS
    • ASK THE EXPERT
    • LIVESTREAMS
    • WEBINARS
    • SEMA LIVESTREAMS
    • RUBBER NEWS EVENTS
    • BALANCING
    • DEMOUNTING
    • SAFETY
    • TIRE REPAIR
    • TPMS
    • TRAINING
    • VEHICLE LIFTING
    • WHEEL TORQUE
    • Best Places to Work
  • ADVERTISE
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
December 09, 2015 01:00 AM

Pep Boys favoring Icahn's offer

Bruce Davis
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    PHILADELPHIA (Dec. 9, 2015) — Pep Boys – Manny, Moe & Jack is now favoring Icahn Enterprises L.P.'s $15.50 per-share takeover offer over the $15 per-share offer from Bridgestone Americas, but Bridgestone has until 5 p.m. on Dec. 11 to make a counteroffer.

    This position, disclosed mid-morning today, came after the company's board of directors determined, after consulting its independent legal and financial advisers, that the Icahn offer constitutes a “superior proposal,” as defined in the company's agreement and plan of merger with Bridgestone Retail Operations L.L.C.

    As part of its proposal, Icahn delivered to Pep Boys a merger agreement that is not subject to due diligence or financing conditions and contains a “hell or high water” anti-trust covenant, Pep Boys said.

    The Pep Boys' board's position trumps its position statement from a day earlier, when it said it was evaluating Icahn's offer but that it had “not changed its recommendation with respect to the Bridgestone transaction, nor is it making any recommendation with respect to the Icahn proposal.”

    In connection with classifying the Icahn offer as a “superior proposal,” Pep Boys' board notified Bridgestone of its determination and intention to effect a change of recommendation and to terminate the Bridgestone agreement.

    Such notice commenced a three-business day period that will expire at 5 p.m. Eastern Standard Time on Dec. 11, during which Pep Boys “may not change the recommendation nor terminate the Bridgestone agreement,” and during which Bridgestone has the right to make counter-proposals.

    In response, Bridgestone Americas acknowledged the existence of Icahn's offer and said, “Any further decisions [regarding Pep Boys] will be made based on what continues to make business and financial sense for Bridgestone and aligns with our long-term growth strategy.

    “We continue to believe that the joining of Bridgestone and Pep Boys, with nearly 200 years of experience in the American automotive aftermarket industry between us, is good for the combined business, offers more diverse career opportunities for employees across a larger company and provides customers with a broad range of the world-class products and services they want, when and where they need them.”

    In its statement Pep Boys said, “There can be no assurance that a transaction with Icahn will result or that Bridgestone will propose any adjustments to the Bridgestone agreement. The Pep Boys board has not changed its recommendation with respect to the Bridgestone transaction, nor has it made any recommendation with respect to the Icahn proposal.

     

     

    Related Articles
    Pep Boys triples Q2 operating income
    Bridgestone to buy Pep Boys
    Bridgestone launches Pep Boys offer
    Bridgestone was 1 of 6 bidders for Pep Boys
    Bridgestone-Pep Boys deal clears HSR period
    Icahn offers to buy Pep Boys outright
    Icahn group eyes Pep Boys' auto parts biz
    Bridgestone-Pep-Boys deal faces 4 lawsuits
    Pep Boys back in the black
    Pep Boys board evaluating Icahn offer
    Icahn's bid for Pep Boys would boost aftermarket business, but not Federal-Mogu…
    Bridgestone counters Icahn's offer for Pep Boys
    Bridgestone weighing options RE: Pep Boys
    Icahn raises Pep Boys offer to $16.50/share
    Bridgestone boosts offer for Pep Boys to $17/share
    Bridgestone will not counter Icahn's Pep Boys bid
    Bridgestone: Learning when to walk away
    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Tire Business would love to hear from you. Email your letter to Editor Don Detore at [email protected].

    Most Popular
    1
    Investment firm buys stake in Mavis Tire Express
    2
    Bridgestone 'making progress' on Russian withdrawal
    3
    Pirelli defers new board nominations
    4
    Bridgestone retail stores create customer rewards program
    5
    Turbo Wholesale acquires Tire Wholesalers Inc.
    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Newsletter Center

    Staying current is easy with Tire Business delivered straight to your inbox.

    SUBSCRIBE TODAY

    Subscribe to Tire Business

    SUBSCRIBE
    Connect with Us
    • Facebook
    • LinkedIn
    • Twitter
    • Instagram
    • RSS

    Our Mission

    Tire Business is an award-winning publication dedicated to providing the latest news, data and insights into the tire and automotive service industries.

    Reader Services
    • Staff
    • About Us
    • Site Map
    • Industry Sites
    • Order Reprints
    • Customer Service: 877-320-1716
    Partner Sites
    • Rubber News
    • European Rubber Journal
    • Automotive News
    • Plastics News
    • Urethanes Technology
    RESOURCES
    • Advertise
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Media Guide
    • Editorial Calendar
    • Classified Rates
    • Digital Edition
    • Careers
    • Ad Choices Ad Choices
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • HUMANITARIAN
    • News
      • TIRE MAKERS
      • COMMERCIAL TIRE
      • GOVERNMENT & LAW
      • MERGERS & ACQUISITIONS
      • BEST PLACES TO WORK
      • OBITUARIES
      • OPINION
      • MID YEAR REPORT
      • SERVICE ZONE
    • ADAS
    • Data
      • DATA STORE
    • Custom
      • SPONSORED CONTENT
    • Resources
      • Events
        • ASK THE EXPERT
        • LIVESTREAMS
        • WEBINARS
        • SEMA LIVESTREAMS
        • RUBBER NEWS EVENTS
      • DIRECTORY
      • CLASSIFIEDS
      • SHOP FLOOR
        • BALANCING
        • DEMOUNTING
        • SAFETY
        • TIRE REPAIR
        • TPMS
        • TRAINING
        • VEHICLE LIFTING
        • WHEEL TORQUE
      • AWARDS
        • Best Places to Work
    • ADVERTISE
    • DIGITAL EDITION