Dine Brands Global Inc., the parent company of Applebee’s, has adopted a poison pill to fend off a hostile takeover bid from Cobblers Cove Capital and Arkhouse Management. The firms, which hold nearly 20% economic exposure to Dine Brands’ shares through swaps, offered $39 per share in cash. The board approved a limited-duration stockholder rights agreement to prevent any party from acquiring control without a premium.
The rights agreement, triggered if an investor acquires 20% of stock (or 10% for non-passive investors), would allow other shareholders to buy shares at a 50% discount. It takes effect in early November and expires in October 2027. Dine Brands operates nearly 3,500 restaurants under the IHOP, Applebee’s, and Fuzzy’s Taco Shop brands.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing