TOKYO - Bridgestone (IW 1000/141) has pulled out of a bidding war with Wall Street activist Carl Icahn for control of U.S. auto service chain Pep Boys.
The U.S. arm of the Japanese tire giant said Tuesday it would not launch a counter-offer to Icahn's latest bid of $18.50 a share, or more than $1 billion.
The two sides have been battling since Bridgestone first sealed a takeover deal with the Philadelphia-based Pep Boys -- Manny, Moe & Jack at just $15 a share.
Bridgestone wanted to add the U.S. firm's 800 service and parts sales outlets across the United States to its 2,200 tire outlets across the U.S.
Icahn wants to split Pep Boys and merge its retail side with his Auto Plus car parts network.
In a securities filing Icahn has said he could pay an even higher price if Pep Boys does not increase the termination fee it must pay Bridgestone for canceling their original takeover deal.
Copyright Agence France-Presse, 2015