Pep Boys said its board has determined that billionaire investor Carl Icahn’s $16.50-a-share offer is superior to a bid from Bridgestone Corp.

Bridgestone now has until 5 p.m. New York time on Wednesday to make another proposal, Pep Boys said in a statement Monday.

The announcement may signal another round in the bidding war for Pep Boys, which both Icahn and Bridgestone want to buy to take advantage of strength in the U.S. auto-parts and service industry. Pep Boys earlier this month had backed a $15.50-a- share offer from Tokyo-based Bridgestone.

Shares of the company, whose full name is Pep Boys -- Manny, Moe & Jack, rose 4.7 percent to $16.50 at 8:32 a.m. in early trading in New York. The shares already had gained 60 percent this year through the end of last week, driven by the bidding war.