NEW YORK (AP) — Pep Boys said Wednesday that it told Bridgestone that it may ditch an already agreed upon $835 million buyout offer and go with a competing offer from Carl Icahn's investment firm that is worth $2 million more.
Icahn Enterprises is offering $15.50 for each Pep Boys share, compared with Bridgestone's offer of $15 per share. The buyout from Icahn Enterprises is worth about $837.4 million. Icahn, an activist investor, has an 11.2 percent stake in Pep Boys, according to FactSet.
Bridgestone, a Japan-based tires and auto service company, has until Friday to increase its offer or Pep Boys said it will take Icahn's deal. Pep Boys said it notified Bridgestone of its decision on Monday. Bridgestone did not immediately respond to a request for comment.
Pep Boys - Manny, Moe & Jack, based in Philadelphia, has about 800 locations around the country that sell auto parts and repairs vehicles.
Shares of Pep Boys were up a penny at $16.31 in morning trading Wednesday. Their shares have risen 66 percent so far this year.