Pep Boys Says Icahn Proposal Is Superior To Bridgestone Offer

(RTTNews) - Automotive aftermarket chain Pep Boys - Manny, Moe & Jack (PBY) Monday said the $16.50 per share cash offer from Icahn Enterprises L.P. (IEP) is a superior proposal as defined in the merger plan with Bridgestone Retail Operations LLC. The proposal was received on December 18 and the Pep Boys has issued a notice in two days time to Bridgestone denoting an intention to change in the recommendation of its board and to terminate the Bridgestone agreement. The notice will expire on December 23 at 5 pm New York City time. Pep Boys further said, Bridgestone has the right to make proposals to the Company.

The merger agreement signed by Icahn has not proposed a due diligence or financing conditions and contains a hell or high water anti-trust covenant.

The Bridgestone offer was for $15 per share in cash as revealed on November 16. Later, offer was sweetened to $15.50 on December 11.

Rothschild is acting as the exclusive financial advisor to Pep Boys and Morgan, Lewis & Bockius LLP is acting as legal advisor.