There's a bidding war for auto parts retailer Pep Boys as activist investor Carl Icahn bests a previous offer and the company's board of directors indicates that an other "superior offer" could be forthcoming from Bridgestone.
Bridgestone had agreed to purchase Pep Boys in October to grow its service network. Bridgestone offered $15 per share, totaling close to $835 million.
Icahn's offer is valued at $863 million.
Pep Boys board has approved Bridgestone's offer and still backs Bridgestone as the preferred buyer, but is waiting for a increased bid expected at $16 per share.
Icahn has disclosed a 12 percent stake in Pep Boys and owns Auto Plus, a close competitor.
Philadelphia-based Pep Boys has struggled to profit in the automotive aftermarket industry, losing nearly $27 million in its recently completed fiscal year, but posted nearly $2 billion in sales. Earlier this year, Pep Boys agreed to nominate three board members in order to avoid a proxy fight with shareholders.
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