Carl Icahn’s latest takeover proposal requires auto-parts retailer Pep Boys to pay him a $39.5 million termination fee if the Philadelphia company ultimately agrees to a higher offer from Japanese tire-manufacturer Bridgestone.
Bridgestone and Icahn have been battling over Pep Boys and its chain of tire and auto-repair outlets. On Monday, Pep Boys deemed Icahn’s $18.50 a share offer a “superior proposal” to one offered by Bridgestone. The Japanese company with U.S. headquarters in Nashville, Tenn., is expected to respond by Thursday evening.