Carl Icahn may drive off with Pep Boys
Pep Boys agreed to sell itself to Bridgestone in late October in a deal valued at more than $800 million. Carl Icahn then took a stake in Pep Boys and subsequently made his own offer.
The Philadelphia-based retailer said Tuesday that Icahn's offer could be a "superior proposal" as defined by the agreement with Bridgestone.
That is important, as it allows Pep Boys to "further consider the Icahn proposal."
"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," Pep Boys said in a statement.
"There can be no assurance that the Board will ultimately determine that the Icahn proposal is a Superior Proposal, that the terms of a transaction with Icahn will be the same as those reflected in its proposal or that any transaction with Icahn will be agreed to or consummated."