NASHVILLE, Tenn.—Bridgestone Americas Inc. has decided not to present a counter-offer to Icahn Enterprises L.P.'s $18.50 per-share offer to buy Pep Boys—Manny, Moe & Jack, thus ending the tire maker's two-month-old pursuit of the Philadelphia-based auto parts retailer and auto services provider.
Icahn's offer, accepted by Pep Boys' board of directors on Dec. 28, is $1.50 above Bridgestone's best offer and values Pep Boys at more than $1 billion.
Under terms of its latest offer of $17 a share, Pep Boys will owe Bridgestone a termination fee of $39.5 million for entering into a superior deal with a third party.
Bridgestone, through its Bridgestone Retail Operations L.L.C. unit, disclosed publicly on Oct. 26 its initial $15 per-share offer for Pep Boys but never elaborated on its specific plans for how it would integrate Pep Boys' 800-plus outlets with its own 2,200-plus retail stores.
Bridgestone officially launched its bid on Nov. 16. Icahn joined the bidding Dec. 7, acquiring a 12.1-percent share in the company and saying it would make an “excellent synergistic acquisition” opportunity for Auto Plus, an automotive aftermarket company wholly owned by Icahn.
Bridgestone and Icahn Enterprises—owned by renowned Wall Street investor Carl Icahn—countered each others' offers six times over the past six weeks.