Carl Icahn offers to purchase auto parts giant Pep Boys

“This proposal is NOT subject to any due diligence, financing or antitrust conditions and we are prepared to enter immediately into the exact same merger agreement that Pep Boys executed with Bridgestone Retail Operations, LLC”. This offer would beat out Bridgestone’s $15 per share or $835 offer back in October.

In company news, Pep Boys (PBY) shares surged to more than an eight-year high on Monday after the auto parts retailer rebuked Carl Icahn’s recently revealed 12.1 % stack in the firm, saying the activist investor “raised concerns” and he could potential upset the proposed acquisition of the company by Bridgestone Corp.

Pep Boys said Monday that Icahn had discussed with the company his interest in its retail business for several months, but the investor failed to provide a better offer than the one from Bridgestone. The stock traded as high as $16.50 and last traded at $16.08, with a volume of 1,100,048 shares trading hands.

“We believe our proposal is clearly superior to the $15.00 per share Bridgestone transaction and that our financial wherewithal to close expeditiously is indisputable”, Icahn Enterprises executive Keith Cozza said in a letter to Pep Boys.

Get a free copy of the Zacks research report on Pep Boys-Manny Moe and Jack (PBY).

Pep Boys-Manny, Moe & Jack (The) (NYSE:PBY): On Tuesday heightened volatility was witnessed in Pep Boys-Manny, Moe & Jack (The) (NYSE:PBY) which led to swings in the share price.

Out of 2 analysts covering Pep Boys-Manny Moe and Jack (NYSE:PBY), 2 rate it “Buy”, 1 “Sell”, while 2 “Hold”. The company has a consensus rating of “Hold” and a consensus target price of $14.75. The shares have now been rated Sell by the stock experts at the ratings house. The company reported $0.09 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.13 by $0.04. The stock’s 52-week range is $8.00 to $16.50.

Pep Boys-Manny, Moe & Jack is a service and automotive aftermarket company. The Company’s stores are organized in a hub and spoke network consisting of Supercenters and Service & Tire Centers.