Pep Boys shares spiked 10 percent in extended trading after the news.
In a Securities and Exchange Commission filing, Icahn said Pep Boys' auto parts segment "presents an excellent synergistic acquisition opportunity" for Auto Plus, which is owned by Icahn Enterprises. The billionaire investor's representatives have held talks with Pep Boys and "various parties" about possible transactions involving its retail arm.
Pep Boys previously reached a deal in October to be acquired by Bridgestone for $15 per share, or $835 million.
Pep Boys did not immediately respond to a request to comment.