Friday, March 09, 2007

Applebee's and Breeden Capital Fail To Reach Agreement

Applebee's (Nasdaq: APPB) announced today that negotiations with activist hedge fund Breeden Capital have failed to produce an agreement after Breeden rejected the company's offer of two board seats. Breeden Capital has been seeking four seats.

In February, Applebee's Board of Directors formed a committee of independent directors to explore strategic alternatives for enhancing shareholder value, including a possible recapitalization or sale.

Jack Helms, co-chairman of Applebee's Strategy Committee said, "we continue to hope that Mr. Breeden will work with us, and not against us, in improving shareholder value."

Breeden Capital, run by former SEC-chief Richard Breeden, has been after the company for months related to its poor performance. Breeden has also criticized executive pay at the restaurant chain.

Breeden has yet to respond to today's news.

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