Pep Boys Accepts New Bridgestone Bid

Auto parts and service chain Pep Boys has accepted an offer to be acquired by Bridgestone Corp. at $17 per share in a deal worth $947 million.

Bridgestone’s offer last week topped a bid of $16.50 per share ($893 million) by investor Carl Icahn. Icahn Enterprises LP countered by promising to beat any bid up to $1.01 billion, but the Pep Boys board says it doesn’t consider Icahn's bid to be a “superior proposal.”

Bridgestone’s tender offer will expire after Jan. 12 unless extended. The Pep Boys board unanimously recommends shareholders accept the tiremaker's offer.

Icahn and Bridgestone have been jousting since October, when Icahn made a tender offer for Pep Boys at $15.50. Bridgestone will merge Pep Boys’ 800 locations in 35 states with its own chain of more than 2,200 tire and auto service centers across the U.S.