Icahn Hikes Bid for Pep Boys

A determined Carl Icahn has offered to acquire Pep Boys for $18.50 per share, significantly above the $17 per share bid by Bridgestone Corp. that was favored by the auto parts and service chain late last week.

The two have been outbidding each other for control of the chain since Icahn offered $15 per share in October. His latest bid of more than $1 billion compares with Bridgestone’s most recent proposal at $947 million. Both companies are eager to combine Pep Boy’s 800 locations with their own parts and services businesses.

Last week the Pep Boys board recommended shareholder accept Bridgestone’s tender offer, even though Icahn vowed to beat any bid up to $1.01 billion. But Monday night the board declared Icahn’s offer “superior” to the Bridgestone offer.