Executives
at casual dining chain Applebee's International Inc. might suffer from upset
stomachs if its proposed $2.1 billion deal with IHOP Corp. fails because
Applebee's could be required to pay a $60 million termination fee, according
to Securities and Exchange Commission documents. The two sides
reached
an agreement to merge July 16 after weeks of speculation that they were
discussing a union. Dealscape first wrote about IHOP's reported appetite for
Applebee's
on
June 13. The Glendale, Calif.-based pancake restaurant's offer breaks down
to $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. The deal is expected to close in the fourth quarter.
—Gerald Magpily
See
Kansas City Business Journal article
See
TheDeal.com's July 16 merger story
See
related July 13 Dealscape entry
Tags:
IHOP,
Applebee's,
deals,
acquisition,
m&a,
mergers
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