Proxy firm urges Applebee's holders reject IHOP

PHILADELPHIA (Reuters) - Shareholder advisory firm Proxy Governance on Thursday urged the investors of Applebee's International Inc APPB.O to vote against the bar-and-grill restaurant chain's planned $1.9 billion acquisition by IHOP Corp. IHP.N

Proxy Governance said it was "not convinced that the offer represents the best value for shareholders."

The advisory firm said it was "a tough call, especially given the current environment in the casual dining sector, however, on balance we recommend that shareholders vote against the merger."

In July, IHOP offered to buy Applebee's for $25.50 per share in a move to expand beyond its core pancake house business.

IHOP and Applebee's could not be immediately reached for comment.

Shares of Applebee's traded at $25.13, down 8 cents, on Nasdaq. Shares of IHOP gained 44 cents to $62.87 on the New York Stock Exchange.

(Reporting by Jessica Hall, editing by Gerald E. McCormick)