Carl Icahn has amassed a roughly 12 percent stake in Pep Boys , and the auto parts and repair company says the activist investor is interested in its retail business, a development that stirs concerns about a separate buyout offer from Bridgestone.
Pep Boys said Monday that a regulatory filing from Icahn disclosed the investor's intention to buy a majority of the company's outstanding voting securities.
Icahn did not immediately return a call from The Associated Press seeking comment.
"These notices have raised concerns that Icahn may be taking these actions to obtain negotiating leverage in its discussions with third parties regarding Icahn's potential purchase of Pep Boys' retail business and, as a result, Pep Boys shareholders' ability to realize the value presented by the Bridgestone offer may be frustrated," the Philadelphia-based company said in a statement.
Tire and auto service company Bridgestone Corp. said in October that it will buy Pep Boys-Manny, Moe & Jack for $835 million. The cash deal amounted to $15 per share, a premium of more than 23 percent to the price of company stock on the last trading day before the acquisition was announced.
That announcement came nearly four months after Pep Boys said that its board was reviewing strategic options to boost shareholder value.
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. Pep Boys said in late October, Icahn declined to raise his previous bid of $13.50 per share.
Pep Boys runs more than 800 locations in 35 states and Puerto Rico.
Its stock rose 23 cents, or 1.5 percent, to $15.92 in Monday morning trading, while broader indexes slumped less than 1 percent after the opening bell.