Bridgestone will not counter Icahn's Pep Boys bid

NASHVILLE, Tenn. (Dec.  29, 2015) — Bridgestone Americas Inc. has decided to not present a counter-offer to Icahn Enterprises L.P.'s $18.50 per-share offer to buy Pep Boys – Manny, Moe & Jack, thus ending the tire maker's two-month-old pursuit of the Philadelphia-based auto parts retailer and auto services provider.

Icahn's offer, accepted by Pep Boys' board of directors on Dec. 28, is $1.50 above Bridgestone's best offer and values Pep Boys at more than $1 billion.

Bridgestone, through its Bridgestone Retail Operations L.L.C. unit, disclosed publicly on Oct. 26 its initial $15 per-share offer for Pep Boys but never elaborated on its specific plans for how it would integrate Pep Boys' 800-plus outlets with its own 2,200-plus retail stores.

Bridgestone officially launched its bid on Nov. 16. Icahn joined the bidding Dec. 7, acquiring a 12.1-percent share in the company and saying it would make an “excellent synergistic acquisition” opportunity for Auto Plus, an automotive aftermarket company wholly owned by Icahn.

Bridgestone and Icahn Enterprises — owned by renowned Wall Street investor Carl Icahn — countered each others' offers six times over the past six weeks.

Pep Boys takeover tussle — a timeline

A chronological look at Bridgestone Americas Inc. and Icahn Enterprises L.P.'s bidding for control of Pep Boys – Manny, Moe & Jack

Dec. 29 — Bridgestone ends its pursuit of Pep Boys, saying it will not offer any counter-offer to Icahn's $18.50 per-share bid.

Dec. 28 — Icahn Enterprises raises offer to $18.50 per share -- $2 a share higher than its previous best bid – and imposes a 5 p.m. EST deadline on Dec. 31 for counter-offers.

Dec. 24 — Bridgestone raises offer by $1.50 per share to $17 per share. Pep Boys board recommends the offer, which is set to expire at midnight, EST, on Jan. 12.

Dec. 23 — Icahn Enterprises offers to counter and trump any Bridgestone bid by 10 cents a share, up to as high as $18.10 a share, prompting Bridgestone to publicly declare it had “significant concerns” relating to the circumstances of the offer.

Dec. 18 — Icahn Enterprises raises its offer $1 a share to $16.50. Pep Boys' board declares it a “superior proposal.”

Dec. 11 — Bridgestone raises offer 50 cents a share to $15.50, matching an offer by Icahn on Dec. 9 but one that Pep Boys' board decided to recommend over the Icahn offer.

Dec. 7 — Icahn offers $15.50 per share; Pep Boys' board recommends the offer one day later.

Dec. 4 — Pep Boys discloses that Icahn has acquired 12.1 percent of its outstanding shares, while at the same time proposing that Pep Boys' retail auto parts segment would make an “excellent synergistic acquisition” opportunity for Auto Plus, an automotive aftermarket company wholly owned by Icahn.

Nov. 16 — Bridgestone launches its $15-per-share tender offer for Pep Boys; the offer runs through TAJ Acquisition Co., a subsidiary of Bridgestone Retail Operations L.L.C. established to effect the acquisition.

Oct. 26 — Bridgestone offers to buy Pep Boys for $15 a share, a price that's a 23-percent premium over Pep Boys' closing price of $12.15 on Oct. 23. Pep Boys' board recommends shareholders accept the offer.

June 30 — Pep Boys' board of directors initiated a review of strategic alternatives to enhance shareholder value, including a possible sale, merger or other form of business combination or strategic transaction.

June 12 — Pep Boys' board of directors agrees to nominate three directors recommended by GAMCO Asset Management Inc. in order to avoid a proxy fight; Rye, N.Y.-based GAMCO is Pep Boys' single largest shareholder with 18.9 percent of the firm's stock.

Sept. 26, 2014 — Mike Odell resigns as president and CEO of Pep Boys, two weeks after the firm reported a second quarter net loss and disclosed plans to close up to 63 Supercenters in a cost-cutting move.

May 30, 2012 — Private equity investor Gores Group L.L.C. called off its proposed $1 billion acquisition of Pep Boys, a few weeks after raising concerns about Pep Boys' earnings potential after two consecutive lackluster quarters. The decision triggered a $50 million payout to Pep Boys.