TOKYO: Bridgestone has pulled out of a bidding war with Wall Street activist Carl Icahn for control of US auto service chain Pep Boys.
The US arm of the Japanese tyre giant said Tuesday it would not launch a counter-offer to Icahn's latest bid of $18.50 a share, or more than $1.0 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 US firm's 800 service and parts sales outlets across the United States to its 2,200 tyre outlets across the US.
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 cancelling their original takeover deal.
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