Ihop Corp., the biggest U.S. pancake-house chain, offered to buy Applebee's International Inc., people familiar with the matter said.
The bid was for more than $2 billion, a person with direct knowledge of the offer said. There may be other bidders, said the people, who declined to be identified because the proposal isn't public. Applebee's stock-market value is about $1.92 billion.
Ihop, which has about 1,300 locations and half the market value of Applebee's, said in February it may acquire a chain that isn't a competitor. Applebee's has 1,900 casual-dining restaurants.It began seeking a buyer after shareholder Breeden Capital Management LLC nominated four board candidates in December and called the stock's performance a "disaster."
Applebee's "is in the middle of a transition," Malcolm Knapp, a New York-based restaurant consultant, said Wednesday. "It's going to take a lot of work."