Pep Boys' Stock Surges After Icahn's Higher Buyout Bid

By Tomi KilgoreMarketWatch Pulse

Pep Boys--Manny Moe & Jack's stock jumped 4.7% in premarket trade Monday, after the auto parts retailer said the higher buyout bid it received from Carl Icahn's Icahn Enterprises L.P. was deemed "superior" to the agreed-on deal with Bridgestone Retail Operations. Pep Boys said Icahn raised over the weekend its buyout bid to $16.50 a share, which is 4.7% above Friday's closing price of $15.76. That was above the bid of $15.50 previously proposed by Icahn, and subsequently matched by Bridgestone. Pep Boys said it notified Bridgestone that it was terminating the previous merger agreement, but said Bridgestone has the right to make new buyout proposals. Pep Boys' stock had soared 60% year to date through Friday, while the S&P 500 has lost 2.6%.

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