Applebee's says adviser urges shareholders OK deal

NEW YORK (Reuters) - Casual dining chain Applebee's International Inc APPB.O said on Thursday that advisory firm Glass Lewis & Co has recommended that its shareholders vote in favor of its proposed sale to IHOP Corp IHP.N.

In July, IHOP offered to buy Applebees for $25.50 per share to expand beyond its core pancake house business.

Applebees said its shareholders would vote on the deal on October 30.

Earlier on Thursday, Proxy Governance urged Applebee's investors to vote against the deal, calling it a "tough call, especially given the current environment in the casual dining sector."

In a statement, Applebee's said: "We respectfully disagree with Proxy Governance's recommendation. Our board of directors recommends stockholders vote in favor of the proposed sale."

(Reporting by Justin Grant)