Pep Boys Inc.: Sell After Stock Advances 16.2% On Takeover Speculation That Lacks Substance
Transcend Event Driven Research
Transcend Event Driven Research
Mon, Feb. 1, 11:47 AM
- The Pep Boys (NYSE:PBY) acquisition by Carl Icahn isn't expected by BB&T Capital Markets to do any favors for Federal-Mogul (FDML -7.3%). Federal-Mogul has been on watch since the deal announcement due to Icahn's sizable position in the automobile supplier.
- BB&T's Tony Cristello explains: "By buying Pep Boys, (Icahn) has created a huge conflict of interest. I wouldn't be surprised if Pep Boys is the tipping point for Federal-Mogul's customers to look for other options."
Wed, Jan. 13, 3:24 PM
Dec. 30, 2015, 9:34 AM
- Icahn Enterprises (IEP) and Pep Boys (PBY -2.8%) formally announce their $1.031B merger.
- The transaction struck at $18.50 per share is expected to close in Q1 of 2016.
- Bridgestone (OTCPK:BRDCY, OTC:BRDCF) will take in a termination fee of $39.5M after bowing out.
- Previously: Bridgestone won't counter Icahn's latest Pep Boys offer (Dec. 29 2015)
Dec. 29, 2015, 6:09 PM
- It looks like Carl Icahn has won the Pep Boys (NYSE:PBY) bidding war: Bridgestone (OTCPK:BRDCY) says it won't counter Icahn Enterprises' (NASDAQ:IEP) $18.50/share offer for the auto repair shop chain. The offer, issued yesterday, topped a prior $17/share offer from Bridgestone.
- PBY -2.7% after hours to $18.43.
Dec. 29, 2015, 9:20 AM
Dec. 29, 2015, 7:31 AM| Dec. 29, 2015, 7:31 AM
Dec. 28, 2015, 5:39 PM
Dec. 28, 2015, 4:45 PM| Dec. 28, 2015, 4:45 PM | 10 Comments
Dec. 24, 2015, 7:35 PM
- Pep Boys (NYSE:PBY) says it agrees to a new takeover offer from Bridgestone (OTCPK:BRDCY) that values the company at $947M and no longer deems the proposal received from Icahn Enterprises (NASDAQ:IEP) a "superior proposal."
- PBY says Bridgestone will pay $17/share, with the announcement coming just before a 5 p.m. ET deadline to match or exceed Icahn’s $16.50/share offer; Icahn said yesterday he would pay $0.10/share more than any Bridgestone offer up to $18.10 under a "ratchet" structure.
- PBY also says the breakup fee in the revised Bridgestone deal has been increased to $39.5M from $35M.
- Icahn says of today's offer: "We cannot understand the actions of the directors in that they know we were willing to offer a lot more than $17."
- Earlier: Pep Boys breakup is likely scenario, analyst says
Dec. 24, 2015, 10:02 AM
- Pep Boys' (PBY -0.2%) bidding process will continue into the new year, culminating with a breakup of the service and retail operations and Monro Muffler (MNRO -0.5%) or O'Reilly Auto Parts (ORLY -0.1%) as potential buyers, Sterne Agee CRT analyst Ali Faghri says, adding that a deal with either company would be a positive catalyst since both have strong track records of acquisition integration.
- Faghri says an Icahn Enterprises (IEP -0.1%) acquisition of PBY likely would result in a sale of the service operations, with MNRO as a potential buyer; should Bridgestone prevail, PBY's retail business would be viewed as non-core and the ~560 stores would be sold, with ORLY the mostly likely buyer in this scenario.
- At an $18.10 takeout price, the analyst says the current deal valuation of ~12.5x TTM EBITDA shows the strength of the auto aftermarket industry, justifying MNRO's premium valuation (~14x 2016 EBITDA) and underscoring the discount at which Advanced Auto Parts (AAP +0.1%) trades (~9x 2016 EBITDA).
Dec. 23, 2015, 12:19 PM
- The bidding war continues: The Nikkei reports Bridgestone (OTCPK:BRDCY) has decided to once more up its offer for Pep Boys (PBY +2.7%). No price has been given.
- The news comes shortly after Icahn Enterprises announced it would pay $0.10/share more than any Bridgestone offer up to $18.10/share. Pep Boys currently trades at $17.35.
- Prior Pep Boys coverage
Dec. 23, 2015, 8:57 AM
- Pep Boys (NYSE:PBY) lands another offer from Icahn Enterprises with a kicker designed to box out Bridgestone (OTCPK:BRDCY, OTC:BRDCF).
- Under the terms of the revised deal, the company lands $0.10 more than any new bid from Bridgestone up to a maximum of $18.10. If Bridgestone makes no new offer, the deal price remains at $16.50.
- Previous forecasts from analysts saw a final deal price somewhere in the $17 to $17.50 range.
- Pep Boys closed at $16.89 yesterday.
Dec. 21, 2015, 8:48 AM
- Pep Boys (NYSE:PBY) announces that it considers a $16.50 offer received Friday evening from Icahn Enterprises as superior to a previous bid from Bridgestone.
- PBY +4.7% premarket to $16.50.
Dec. 12, 2015, 10:15 AM
- Pep Boys (NYSE:PBY) changed course again by accepting a $15.50 per share offer from Bridgestone (OTCPK:BRDCY, OTC:BRDCF) that matched an offer from Carl Icahn's organization.
- The deal price works out to around $863M.
- An acquisition of Pep Boys would give Bridgestone a significant increase in its presence in North America.
- Pep Boys closed at $16.34 on Friday indicating some traders think the drama isn't quite over yet.
Dec. 9, 2015, 9:32 AM
- Pep Boys (PBY -0.5%) announces it decided the $15.50 offer from Icahn Enterprises is a "superior" proposal to the lower bid from Bridgestone.
- The company has notified Bridgestone of its intention to terminate their agreement which gives Bridgestone three days to make a better proposal.
Dec. 8, 2015, 9:02 AM
- The board of directors at Pep Boys (NYSE:PBY) expects a "superior" offer from Bridgestone (OTCPK:BRDCY, OTC:BRDCF) after Carl Icahn and his affiliates came in with a $15.50 per share bid yesterday for the company.
- The company is effectively passing on the current Icahn offer while it waits for the competition to play out.
- PBY trades right at $16 in premarket trading.
- Previously: 52-week high for Pep Boys after Icahn action (Dec. 07 2015)
- Previously: Icahn on the hunt for Pep Boys with offer over Bridgestone's (Dec. 07 2015)