Sardar Biglari, chairman and CEO of the
Lion
Fund LP and
Western
Sizzlin Corp. , owns 1.4% of Applebee's International Inc., but he will
not be voting for the proposed merger with IHOP Corp.
for
$2.1 billion in cash. "We think Applebee's shareholders would realize
considerably more money if the company carries out the refranchising strategy
as outlined by IHOP rather than permitting the sale to go through at the
currently agreed price," Biglari said in a press release. The Glendale, Calif.,
pancake chain operator is paying $25.50 a share in cash for the Overland Park,
Kan., casual dining chain, a 5.2% premium to Applebee's closing share price of
$24.23 on Feb. 12, the day before the company announced a strategic review. If
the deal does not go through, Applebee's could face a termination fee of $60
million. — Gerald Magpily
See
Kansas City Business Journal
See
TheDeal.com's July 16 article
Tags:
Applebee's,
IHOP,
M&A
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