Pep Boys Says Icahn's 13D Filing Discloses 12% Ownership

(RTTNews) - Automotive aftermarket service and retail chain, Pep Boys - Manny, Moe & Jack (PBY) Monday said it received notice on 12 percent ownership by Carl C. Icahn and affiliated entities. The Schedule 13D filing disclosed Icahn's interest in Pep Boys and, in particular, its retail business.

As disclosed earlier, Pep Boys and Bridgestone Retail Operations, LLC, a subsidiary of Bridgestone Americas, Inc., had entered into a definitive merger agreement under which Bridgestone will acquire Pep Boys in an all-cash transaction for $15.00 per share. Icahn has proposed an offer $13.50 per share to acquire Pep Boys, however decliend to make a superior offer to Bridgestone's.

On December 4, Icahn made a Hart-Scott-Rodino anti-trust filing in order to further preserve its flexibility, to acquire in excess of a majority of Pep Boys' outstanding voting securities. However, the Schedule 13D filed by Icahn reserved its right to propose a variety of other transactions involving Pep Boys in order to achieve its stated interest in acquiring Pep Boys' retail business.

According to Pep Boys, these notices have raised concerns that Icahn may be taking these actions to obtain negotiating leverage in its discussions with third parties for potential purchase of the retail business and, as a result, Pep Boys shareholders' ability to realize the value presented by the Bridgestone offer may be frustrated.