Oct. 30 (Bloomberg) -- Applebee's International Inc. shareholders voted to approve the $2.1 billion purchase of the casual dining chain by pancake restaurant owner Ihop Corp.

The Applebee's vote in Overland Park, Kansas, clears the way for the transaction to be completed next month. Applebee's, in a statement today, said about 70 percent of the shares were voted in favor of the acquisition.

Ihop, the largest U.S. pancake-house chain, agreed to buy Applebee's in July for $25.50 a share, a 4.6 percent premium at the time. The acquisition has faced opposition from some shareholders, including several directors who said the price undervalued the company.

Burton ``Skip' Sack, Applebee's largest individual shareholder and a director, last week said he plans to ask a court to appraise the company in order to get Ihop to pay a higher price. Sack, along with four other directors including Chief Executive Officer David Goebel, voted against the purchase. Nine other directors favor the acquisition.

Ihop, based in Glendale, California, with about 1,300 restaurants, plans to convert most of Applebee's more than 500 company-owned restaurants to franchises, helping to lower costs. Applebee's, based in Overland Park, has about 1,900 restaurants.

Ihop rose 4 cents to $62.72 at 4:01 p.m. in New York Stock Exchange composite trading. Applebee's added 9 cents to $25.29 in Nasdaq Stock Market trading.

Applebee's began seeking a buyer after shareholder Breeden Capital Management LLC nominated four board candidates in December and called the stock's performance a ``disaster.''

To contact the reporter on this story: Josh Fineman in New York at jfineman@bloomberg.net

Last Updated: October 30, 2007 16:17 EDT