OVERLAND PARK Kan. Applebee's International Inc. has set Oct. 30 as the date for a shareholder vote on a proposed $2.1 billion buyout by IHOP Corp., according to a proxy statement filed Thursday with federal regulators.
Pancake specialist IHOP said in July it would acquire the 1,950-unit casual-dining chain for $25.50 per share. In announcing the deal, IHOP said it planned to refranchise most of Applebee's more than 500 company-owned units and cut corporate costs.
Five of Applebee's 14 directors, including chief executive David Goebel and chairman Lloyd Hill, have indicated they plan to vote their combined 5-percent equity stake -- around 3.85 million shares -- against the buyout, according to proxy materials filed earlier this month with the Securities and Exchange Commission. The dissenting group also includes chief financial officer Steve Lumpkin, former CEO Burton "Skip" Sack and director Erline Belton.
The Sept. 6 filing also revealed that the five directors had voted against the pending deal before its announcement because of concerns that the purchase offer was too low.
Shareholder Sardar Biglari said in July that he planned to vote against the deal, also because of valuation concerns. Biglari, chairman of The Lion Fund LP hedge fund and the Western Sizzlin' Corp. family-dining chain, holds 1 million shares in Applebee's, or about a 1-percent stake.
Applebee's filing on Thursday said the special shareholder meeting would be held in Overland Park, where the company is based.
