Applebee's Shareholders Approve IHOP Buyout

|
Includes: APPB, IHP
by: SA Eli Hoffmann

Applebee's International's shareholders approved the proposed $25.50 per share/$2.1 billion purchase of Applebee's by IHOP Corp. Tuesday, the companies said.The companies expect the deal to close by Nov. 29. Applebee's said about 70% of the shares were voted in favor of the acquisition. IHOP is the largest U.S. pancake-house chain. The acquisition has faced some opposition from shareholders, including several directors who felt the price, which at the time of the offer was a 4.6% premium, undervalued the company. Burton 'Skip' Sack, Applebee's largest individual shareholder and a director, said last week he would ask a court to appraise the company in an effort to get IHOP to pay a higher price. Including Sack and CEO David Goebel, five directors opposed the acquisition; nine directors favored it. IHOP, with about 1,300 restaurants, plans to turn most of Applebee's more than 500 company-owned restaurants into franchises.

Seeking Alpha's news briefs are combined into a pre-market summary called Wall Street Breakfast. Get Wall Street Breakfast by email -- it's free and takes only seconds to sign up.

About this article:

Expand
Want to share your opinion on this article? Add a comment.
Disagree with this article? .
To report a factual error in this article, click here