Site Map del.icio.us Blog this page


Philly Deals: Break-up with Gores Group hurts Pep Boys

published Wed, May 30 2012 18:50 GMT
Shares of Pep Boys — Manny, Moe & Jack fell 20 percent, to less than $9 a share, in trading Wednesday after Los Angeles-based buyout investor Gores Group said it was walking away from its January offer of $15 a share.Gores has had such a severe case of buyers’ remorse that it’s paying a $50 million breakup fee to Pep Boys for the privilege of not owning the North Philly-based auto-parts and service chain. The new stock price isn’t much more than the "estimated value of underlying real estate" at Pep Boys’ 700 stores, David A. Schick, analyst at Stifel Nicolaus & Co., told investors in a note. It’s as if the business would be worth as much dead as ...

Click for more articles from www.philly.com