Bridgestone will not counter Icahn's Pep Boys bid

Bridgestone Tires
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Bridgestone Tires

Bridgestone said Tuesday it will not counter activist investor Carl Icahn's latest offer to acquire Pep Boys — Manny, Moe and Jack.

Icahn Enterprises offered Monday to buy all outstanding Pep Boys stock for $18.50 a share in cash, which would value the auto parts company at about $1 billion. The company said its board determined Icahn's offer was superior to a bid from Bridgestone that it had previously accepted.

Icahn and Bridgestone had engaged in a bidding war in recent weeks. Monday's proposal was the third from Icahn, who already holds a more-than-10 percent stake in Pep Boys.

Icahn said he would not raise his bid higher than $18.50 per share unless Pep Boys increased Bridgestone's termination fee of $39.5 million.

Bridgestone first said it would acquire Pep Boys in late October.

Pep Boys shares fell nearly 3 percent in extended trading Tuesday.

Reuters contributed to this report.