Pep Boys shares tumble after deal called off

By Mark Krieger:Private equity firm The Gores Group walked away from its $15 a share cash bid to acquire iconic auto parts chain Pep Boys Manny Moe & Jack (PBY). It must been something quite horrific for it to end up with a $50-million hole in its pocket as a penalty consequence - for disappearing at the altar.

The L.A.

Value Expectations submits: Pep Boys – Manny, Moe & Jack (NYSE:PBY), the auto parts retailer out of Pennsylvania has been garnering some headlines lately as the firm is considering selling itself. The company has been working with Bank of America to explore options for completing a sale and attempting to stir up interest from private equity firms that could become potential buyers.

By Steve Breyer:Until recently the stock of Pep Boys (PBY) had exhibited some rather lackluster stock price performance relative to its peers. It got a big boost when it agreed to be acquired by the Gores Group on January 30th. The agreed-to acquisition price is at $15 per share with Pep Boys having 45 days to shop for a better deal.

By SA Editor Miriam Metzinger: Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Thursday June 14. Pep Boys (PBY), AutoZone (AZO), O'Reilly Motors (ORLY)

Mark Krieger submits:Although Pep Boys (PBY) came in light on revenues, it still managed to report fourth quarter results that exceeded analyst forecasts by generating 4 cents in earnings versus an expected 3 cent loss.

Gores Group, which agreed to buy the automotive repair chain in January, might be having second thoughts about the $1.1-billion deal. It asked Pep Boys to delay the May 30 shareholders meeting where it would be voted on.

Private equity firm Gores Group will pay $15 a share for Pep Boys in a deal worth nearly $800 million.A Los Angeles private equity firm wants to drive off with Manny, Moe and Jack.