When Dollar General entered an unsolicited billion dollar bid for Family Dollar last year, the smaller company said thanks but no thanks. The latest merger-love triangle appears to be taking a different path: auto parts retailer Pep Boys seems to be mulling the idea of ditching its already agreed upon deal with Bridgestone in favor of more money from Auto Plus owner Icahn Enterprises.
Pep Boys said on Tuesday that the new offer constitutes a “superior proposal” under its terms with Bridgestone, giving the company ample opportunity to “further consider the Icahn proposal,” Business Insider reports.
“The Board has not changed its recommendation with respect to the Bridgestone transaction, nor is it making any recommendation with respect to the Icahn proposal,” Pep Boys said in a statement on Tuesday.
On Monday, Icahn Enterprises offered to pay $837 million ($15.50/share) for Manny, Moe and Jack, trumping Bridgestone’s $835 million ($15/share) bid made back in October.
Pep Boys previously agreed to sell 800 retail locations to Bridgestone, which operates 2,200 tire and car service centers in the U.S. Bridgestone currently operates retail locations under the Firestone Complete Auto Care, Tires Plus, Hibdon Tires Plus and Wheel Works brand banners.
“There can be no assurance that the Board will ultimately determine that the Icahn proposal is a Superior Proposal, that the terms of a transaction with Icahn will be the same as those reflected in its proposal or that any transaction with Icahn will be agreed to or consummated,” Pep Boys further cautioned of the new deal.
While Pep Boys continues to mull the offer and its next steps, Icahn maintains that its proposition is the better.
“We believe our proposal is clearly superior to the… Bridgestone transaction and that our financial wherewithal to close expeditiously is indisputable,” Icahn Enterprises wrote in a letter to Pep Boys on Monday, no doubt throwing a bit of shade Bridgestone’s way.
Carl Icahn has a shot at upending the Pep Boys takeover [Business Insider]
by Ashlee Kieler via Consumerist