Pep Boys says Icahn could further sweeten offer

Subsequently, Pep Boys said Wednesday that Japan-based Bridgestone has until 5 p.m. Thursday to beat Icahn’s offer for the iconic company.

“We have significant concerns relating to the circumstances surrounding the submission of the revised offer and Pep Boys’ review and consideration of that offer”, Bridgestone spokeswoman Susan Steeno said in an emailed statement. “We will make no further comment”.

Pep Boys would give Bridgestone a greater presence in the U.S. Icahn has said Pep Boys would fit well with Auto Plus, an aftermarket auto-parts seller his company owns.

Pep Boys shares gained 3 percent to close at $17.40 today.

If Bridgestone doesn’t boost its $15.50-a-share bid, Icahn will maintain its offer of $16.50 a share. The Japanese tire maker has only until tomorrow night to submit a better offer, according to the SEC filing, which states that Pep Boys has notified Bridgestone that the company will terminate their agreement to take Icahn’s offer.

Bridgestone wants to join Pep Boys’ 800 stores and tire and fleet-service operations, which have reported modest growth, to Bridgestone’s 2,000-store Firestone chain, based in Tennessee.

As previously announced on October 26, the company entered into the Bridgestone agreement pursuant to which Bridgestone commenced, on November 16, a tender offer for all outstanding shares of Pep Boys at $15 per share in cash.