Pep Boys to be bought by Icahn for $1B

NEW YORK -- Pep Boys will be acquired by Carl Icahn for $1 billion, ending a weeks-long bidding war with the Japanese tire company Bridgestone.

See Full Article

The deal is expected to close in the first quarter of next year.

Icahn Enterprises offered $18.50 in cash for each share of Pep Boys on Tuesday, $1.50 more per share than the most recent offer from Bridgestone. With the contest becoming too rich, Bridgestone bowed a few hours later. Because Pep Boys had already agreed to a deal with Bridgestone Corp., Icahn Enterprises will pay a $39.5 million break-up fee.

Pep Boys - Manny, Moe & Jack, based in Philadelphia, operates more than 800 locations around the country that sell auto parts, fixes vehicles and offer other services. The company's tire business has been under pressure and it has looked for new ways to generate cash.

Icahn said in a statement that Pep Boys has "enormous growth potential." The activist investor said he has been looking for a company to pair with Auto Plus, an auto parts distributer that Icahn Enterprises bought earlier this year.

Shares of Pep Boys fell 57 cents, or 3 per cent, to $18.37 in morning trading Wednesday. Icahn Enterprises LP shares slipped 77 cents, or 1.3 per cent, to $60.75.



Advertisements

Latest Economic News

  • Lender risk sharing could exacerbate a housing downturn, fed draft report says

    Economic CBC News
    A federal proposal to have lenders shoulder more of the risk for potential mortgage defaults could dampen lending or intensify a decline in house prices, according to internal documents from the Department of Finance. Proponents of lender risk sharing say it would encourage banks to be more cautious when lending to high-risk borrowers, thereby mitigating the impact of a correction in property prices. Source
  • Bombardier shares up 5% as company swings to surprise adjusted profit

    Economic CBC News
    Bombardier shares where up 10 cents or about five per cent on the TSX on Monday as investors digested the company's latest quarterly results. The Montreal-based plane and train manufacturer earned $39 million, or two cents per share, in adjusted profit in the three months up until the end of June. Source
  • Feds start fiscal year with $68M surplus, but red ink is on the way

    Economic CTV News
    OTTAWA -- The federal government started the fiscal year with the tiniest of budgetary surpluses, though the black ink is expected to turn very red in the coming months. The Finance Department's monthly fiscal monitor reports that the government posted a $68-million surplus for April and May, just less than last year's total over the same period. Source
  • 2 major owners of Sears Canada shares end talks to take over company

    Economic CBC News
    Billionaire U.S. hedge fund manager Eddie Lampert and Fairholme Capital Management, LLC say they have ended their joint negotiations on a possible bid for Sears Canada. In a release issued Friday morning, Lampert's firm, ESL Partners L.P. Source
  • Quebec government puts end to oil and gas exploration on Anticosti Island

    Economic CTV News
    QUEBEC -- The Quebec government has put an end to oil and gas exploration on Anticosti Island. The province's energy and natural resources department says the decision announced today was made to protect the island's natural character and in support of its bid to become a UNESCO World Heritage Site. Source
  • TransCanada looks to expand Canadian Mainline natural gas pipeline

    Economic CTV News
    CALGARY -- TransCanada Corp. (TSX:TRP) announced plans to expand its Canadian Mainline pipeline in southern Ontario as it reported an improved second-quarter profit compared with a year ago. The company says it plans to spend $160 million in increase capacity of the natural gas pipeline. Source
  • Canada's GDP expanded by 4.6% in the year up to May, strongest pace in 17 years

    Economic CBC News
    Canada's economy grew by 0.6 per cent in May, the seventh straight monthly gain. The overall economy has grown by 4.6 per cent in the 12 months leading up to the end of May, Statistics Canada said. Source
  • Canada's economic growth blows past expectations

    Economic CTV News
    OTTAWA -- Economic growth in the country blew past expectations in May, powered by the energy sector. Statistics Canada says real gross domestic product grew by 0.6 per cent for the month. Economists had expected an increase of 0.2 per cent, according to Thomson Reuters. Source
  • George Weston Ltd. reports second-quarter profit up from year ago

    Economic CTV News
    TORONTO - George Weston Ltd. (TSX:WN) reported an improved second-quarter profit compared with a year ago, boosted by its Loblaw operations. However, the company said its Weston Foods results were below expectations due to challenges in its frozen business. Source
  • Bombardier reports US$296M second-quarter loss due to restructuring costs

    Economic CTV News
    MONTREAL - Bombardier Inc. (TSX:BBD.B) reported a US$296-million loss in its latest quarter as it was hit by restructuring costs. The aircraft and train maker, which keeps its books in U.S. dollars, says the loss amounted to 13 cents per share for the quarter ended June 30 compared with a loss of $490 million or 24 cents per share in the same quarter a year ago. Source