UPDATE 1-Investors GrizzlyRock, Vivaldi oppose Restaurant Group's purchase of Wagamama

(Adds details, share reaction)

Nov 14 (Reuters) - Two shareholders of Frankie & Benny’s owner Restaurant Group Plc on Wednesday called on the company to cancel its proposed 357-million-pound ($463 million) deal to buy the Wagamama noodle chain.

Shareholders GrizzlyRock Capital and Vivaldi Asset Management, which manage investment funds that jointly own 1.9 percent of Restaurant Group, said the company had not considered risks related to executing the deal.

Restaurant Group, most of whose restaurants and gastropubs focus on American, TexMex and traditional British cuisine, had announced a deal last month to buy Wagamama, to expand its chain of pubs and airport and shopping mall eateries. [nL3N1XA35U

The 315 million pounds rights issue, proceeds of which was planned to partly fund the acquisition, was announced at a 57 percent discount.

“This (rights issue) amount both in absolute size and especially percentage of the current market capitalization is far too large,” GrizzlyRock and Vivaldi jointly said in a statement on Wednesday.

The London-listed company’s shares have lost nearly one-fourth of its value, since it announced the deal through to Tuesday’s close. The company’s shares, which fell earlier in the session on Wednesday, reversed course and were trading up 1.3 percent at 229.6 pence at 1353 GMT.

The company did not immediately respond to Reuters request for a comment.

$1 = 0.7712 pounds Reporting by Muvija M in Bengaluru; Editing by Shinjini Ganguli and Editing by James Emmanuel