After disclosing that he had purchased a 12-percent stake of the company, billionaire investor Carl Icahn submitted an offer of $863 million for the Pep Boys chain of automotive parts stores, according to the New York Times.

Icahn’s offer Tuesday of $15.50 per share is higher than Bridgestone’s offer of $15 per share in October for the chain of 800 stores. The Japanese tire giant offered to buy the chain to add to its 2,200 stores including Tires Plus, Firestone Complete Auto Care, Hibdon Tires Plus and Wheel Works to make one of the largest parts, tire and service chains in the U.S.

Pep Boys’ deal with Bridgestone included a $35 million breakup fee, according to the Wall Street Journal, which Icahn is willing to pay as part of his offer. Officials at Pep Boys said publicly that Icahn’s offer could be a “superior proposal” to the Bridgestone deal.
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