Icahn requires 12 pct stake in Pep Boys, sees fit for rival

BOSTON Billionaire investor Carl Icahn reported on Friday that he now owns 12.12 percent of auto parts business Pep Boys-Manny, Moe & Jack (PBY.N), which agreed to sell itself to Bridgestone (5108.T) in October, and mentioned its retail automotive parts segment would be a best match for rival Auto Plus.

Icahn began buying the shares in late November and now owns 6.55 million shares, generating him the second largest owner after Mario Gabelli’s Gabelli Funds, a regulatory filing shows.

In the filing, Icahn stated he thinks the company would “present an outstanding synergistic acquisition chance for Auto Plus,” a privately held organization he currently owns.

Icahn mentioned he plans to hold discussions with the firm and numerous parties that participated in its strategic option evaluation approach about prospective transactions involving the company’s retail segment.

The move comes significantly less than two months after Pep Boys agreed to sell itself to Bridgestone Corp for roughly $ 835 million, a move which would assist the Japanese tire organization expand its retail network by more than one particular third in the United States.

Pep Boys, which had place itself up for sale in June, has not benefited from the resurgent auto market to the extent that rivals AutoZone and Advance Auto Components have.

At age 79, Icahn, whose net worth is place at roughly $ 21 billion by Forbes, is nevertheless playing an active function in American boardrooms, possessing most not too long ago urged insurer American International Group to split itself into 3 pieces in late October. Final year he pressured eBay to break up.

Pep Boys was founded in 1921 by four buddies who pooled collectively $ 800 to open an auto components shop in Philadelphia.

(Reporting by Svea Herbst-Bayliss Editing by Sandra Maler)