(FROM THE WALL STREET JOURNAL 12/24/15) 
   By Chelsey Dulaney

Icahn Enterprises LP said it is willing to pay around $1 billion for Pep Boys -- Manny, Moe & Jack as it seeks to upend the auto-parts and repair chain's deal to sell itself to Japan's Bridgestone Corp.

Icahn Enterprises, the publicly traded company of activist investor Carl Icahn, offered to pay 10 cents a share more than any Bridgestone offer, up to $18.10 a share, according to a regulatory filing.

If Bridgestone doesn't boost its $15.50-a-share bid, Icahn will maintain its offer of $16.50 a share.

Shares in Philadelphia-based Pep Boys rose 3% to $17.40 apiece on Wednesday. At that price, the retailer is valued at about $942 million.

Pep Boys said the new offer represents a "superior proposal" under its merger agreement and that it has notified Bridgestone of its intent to terminate their deal agreement. Bridgestone has until 5 p.m. ET on Thursday to make a better offer.

Bridgestone said it has "significant concerns relating to the circumstances surrounding the submission of the revised offer and Pep Boys' review and consideration of that offer."

The Japanese tire company said it is evaluating its options and will make a decision based on what makes financial sense for the company.

Pep Boys put itself up for sale earlier this year and in October agreed to sell itself to Bridgestone for $15 a share.

In December, Icahn Enterprises unexpectedly offered $15.50 a share for the company. Icahn Enterprises had been involved in a bidding process for Pep Boys earlier this year.

Both Icahn and Bridgestone's agreements include a $35 million breakup fee.

(END) Dow Jones Newswires

December 24, 2015 02:47 ET (07:47 GMT)

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