Pep Boys - Manny Moe & Jack, a U.S. auto parts retailer, said billionaire investor Carl Icahn had raised its offer to buy the company, topping that of Japanese tire maker Bridgestone.
Pep Boys said its board had determined that Icahn Enterprises LP's offer of $16.50 per share in cash was superior to that of Bridgestone's offer of $15.50 per share.
Earlier, Icahn Enterprises had also offered $15.50 per Pep Boys share in cash.
Bridgestone had earlier raised its offer for Pep Boys by 50 cents a share.
(Reporting by Ankit Ajmera in Bengaluru; Editing by Shounak Dasgupta)