Pep Boys Board Determines Icahn's Revised Proposal Continues To Be Superior

(RTTNews) - Automotive aftermarket service and retail chain Pep Boys - Manny, Moe & Jack (PBY) Wednesday said its board determined the revised proposal from Icahn Enterprises continues to be superior to Bridgestone Retail Operations LLC offer. The company said the revised proposal improved the purchase price from $16.50 per share to the greater of $16.50 per share and "a price equal to $0.10 more per share than any increased bona fide bid offered by Bridgestone, up to a maximum of $18.10 per share."

On Tuesday, the company has Icahn's proposal was superior one compared to Bridgestone's proposal.

The merger agreement signed by Icahn has not proposed a due diligence or financing conditions and contains a hell or high water anti-trust covenant. The Bridgestone offer was for $15 per share in cash as revealed on November 16. Later, offer was sweetened to $15.50 on December 11.

On December 22, Pep Boys delivered notice to Bridgestone on its board's determination and intention to effect a change of recommendation and to terminate the Bridgestone agreement. Bridgestone still has the right to make proposals.

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