Pep Boys Says Icahn Enterprises Offer Expected To Result In Superior Proposal

(RTTNews) - Auto parts retailer Pep Boys - Manny, Moe & Jack (PBY) said its board of directors has determined that the proposal from Icahn Enterprises L.P. to acquire the company for $15.50 per share in cash would reasonably be expected to result in a "Superior Proposal" as defined in the company's agreement and plan of merger with Bridgestone Retail Operations, LLC.

Pep Boys said this determination by the Board allows the company to take certain actions, in accordance with the procedures set forth in the Bridgestone agreement, to further consider the Icahn proposal.

However, 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.

In October, Pep Boys agreed to be acquired by Bridgestone Americas, Inc. in an all-cash transaction for $15.00 per share, or about $835 million in aggregate equity value. Bridgestone commenced its tender offer for Pep Boys in mid-November and it is scheduled to expire on January 4, 2016.

Rothschild is acting as the exclusive financial advisor to Pep Boys and Morgan, Lewis & Bockius LLP is acting as legal advisor.