DealBook reports that Lion Fund chairman and 1.4 percent stake Applebee’s shareholder Sardar Biglari is experiencing some acid reflux regarding IHOP’s proposed acquisition of the chain. While analysts have crowded around the stark ideological differences in business strategies between the two “restaurants” (IHOP owns 26.3% of its locations, whereas Apple is primarily a franchisor, and owns only 10 of its 1,306 establishments), and Keith Hahn refuses to believe that anyone would want to live in a society where soccer moms, Two and a Half Men, AND IHOPplebees exists, Biglari’s issue is that the purveyor of annoying commercials starring celebrity “chef” Tyler Florence is being lowballed.
Since the $1.9 billion deal was made public last week, IHOP’s stock price has surged, shooting up by about 17 percent to $65.76. Since a buyer’s stock tends to go down after announcements of this nature, Biglari thinks an undervaluation is at hand. He told the Applebee’s board that they’ve “made a grave mistake” in agreeing to the bid, and refused to eat in an International House of Pancakes—a restaurant that DealBook points out, “is known for its pancakes”—until conditions (the $25.50 sale price) improve.
Just to play devil’s advocate, and not because we necessarily think Biglari is wrong, here’s what some of our commenters have had to say about Applebee’s in the past:
Used to work for Crapplebees…as a waiter and in the kitchen sometimes…once undercooked the chicken (that ish was more raw than BSD’s bunghole) for the Buffalo Chix Salad…Manager wanted to get it out…just had me douse it in Buffalo Sauce so the customer couldn’t see the pink…and served it…This manager left after a busted-ugly waitress he was having an affair with tried to kill herself…twice. This merger is like a White-trash wedding in a trailer park.
Posted by: LexSteelz | June 14, 2007 12:35 PM
I work for applebees, This would be a glorified Denny’s. Except much more messed up. Yea can I get me a side of bbq covered slap jacks and some steak. Mmm, yeap thats me trailer i live it it follows me 1974 ford pickup where ever I go. And also can I get a beer?
Actually applebees stinks thiscould be a great thing.
Posted by: Apple B*tch | June 14, 2007 02:28 PM
applebees is the work of the devil. if ihop gives them a penny i will take is as a sign that they are in a partnership with the terrorists.
Posted by: Anonymous | July 25, 2007 03:16 PM
Did anyone else wake up this morning feeling empty, with the sense that something was awry? Did you get a nervous feeling in your stomach that seemed to indicate that if later today, a big merger and/or acquisition were announced, there’d be no one to write about it? That if there were a Tax on Private Equity emergency, and say Congress was thisclose to announcing there’d be no increase on the paltry 15%, there’d be no Jew properly suited for the job of chaining himself to a bulldozer (go with me), swallowing the key and refusing to expel it until they promised to make those capitalist crooks pay?
If you answered: “Yes. Yes. And yes,” congratulations your Andrew Ross Sorkin (Queen) Radar (ARSQR) is working. DealBook, taking a cue from DealBreaker and writing about itself, reports that Andrew Ross Sorkin (Queen) is on his honeymoon. Which leads us to our next question:
Microsoft and Yahoo, seen hanging out at Bungalow 8 several times last year (according to the New York Post), are rumored to be in merger talks once again. Spurred by a love of Latin sounding next-gen technological platforms (Vista for Microsoft, Panama for Yahoo), missed or failed acquisition opportunities (mainly by Yahoo with DoubleClick and Facebook) and a desire to do something to stay competitive with Google, the two companies are getting along much better than they used to. The initial dissolution of talks was caused partly by Microsoft online group managers insisting that the company stick with its own online search and ad systems rather than buy Yahoo. Many leaders of those projects are no longer with Microsoft.
Can this actually work or is this the AOL/Time Warner of this decade? Integration of the two companies could be a huge problem. Yahoo has 12,000 employees and a recently reshuffled corporate structure, with a co-founder (Jerry Yang) that is said to dislike Microsoft and actively avoid the use of Microsoft products.
Yahoo shares surged over 20% in after-hours trading yesterday, as the stock closed at just over $28 a share and now sits at over $34. This pushes the market cap of Yahoo to over $38bn. Microsoft’s market cap is closer to $300bn, and the company has about $28bn in cash and short term investments. Microsoft, Yahoo Reconsider Merger – [WSJ]