Pep Boys Favors New Icahn Bid Over Bridgestone Offer

Investor Carl Icahn has outbid tiremaker Bridgestone Corp. in the latest round of offers from the two companies to acquire aftermarket parts and service chain Pep Boys.

The Pep Boys board describes the new offer from Icahn Enterprises LP of $16.50 per share a “superior proposal” to Bridgestone’s $15.50 bid. The board advised the Japanese tiremaker on Sunday it has until Dec. 23 to respond.

Bridgestone began the bidding in October with a tender offer at $15 per share. The tiremaker seeks to merge the business with its chain of 2,200 tire and service centers.

Icahn Enterprises, which owns 12% of Pep Boys and all of rival Auto Plus, countered in early December at $15.50. Bridgestone responded last week by matching Icahn’s bid.