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This profile was last updated on 4/17/14  and contains information from public web pages.

Mr. Gregory M. Shepard

Wrong Gregory M. Shepard?


Donegal Group , Inc.
Phone: (717) ***-****  HQ Phone
Donegal Group Inc
1195 River Road Box 302
Marietta , Pennsylvania 17547
United States

Company Description: Donegal Group Inc. is an insurance holding company whose insurance subsidiaries offer personal and commercial lines of property and casualty insurance to businesses...   more

Employment History

  • Investor
    Donegal Group Inc
  • Critic
    Donegal Group Inc
  • Chairman and President
    American Union Insurance Company
  • Chairman of Directors and President
    Direct Auto Insurance Company
  • Chairman and President
    Illinois Healthcare Insurance Company

Board Memberships and Affiliations

  • Board Member
    21st Century Insurance Group
17 Total References
Web References
Gregory M. Shepard Offers a ..., 17 April 2014 [cached]
Gregory M. Shepard Offers a Closing Bonus to a Successful Purchaser of Donegal Group Inc.
Gregory M. Shepard Voluntarily Withdraws Form A Applications - Blasts Donegal Group's Board and CEO Don Nikolaus
Gregory M. Shepard Offers a ..., 7 April 2014 [cached]
Gregory M. Shepard Offers a Closing Bonus to a Successful Purchaser of Donegal Group | Full Story
Gregory M. Shepard Offers a Closing Bonus to a Successful Purchaser of Donegal Group
BRADENTON, Fla., April 7, 2014 /PRNewswire/ -- (NASDAQ: "DGICA" and "DGICB") - Gregory M. Shepard announced today that he is offering to pay a closing bonus to any property and casualty insurance company or other third party who completes a successful purchase of Donegal Group Inc. ("Donegal Group"), subject to definitive terms to be agreed to with the purchaser. Mr. Shepard announced today that he plans to approach at least 18 property and casualty insurance companies to discuss their interest in acquiring Donegal Group via a merger or affiliation with Donegal Mutual Insurance Company ("Donegal Mutual"). Mr. Shepard announced today, via an amendment to his Schedule 13D filed with the S.E.C, that he plans to offer a closing bonus to any company or hedge fund that acquires Donegal Group and Donegal Mutual. Mr. Shepard expects the range of the closing bonus to be between $5 million and $20 million, depending on terms to be negotiated. Mr. Shepard stated: "My intent now is to offer a closing bonus to any third party that can close on the acquisition of Donegal Group. In my opinion, Donegal Group's Board of Directors has failed miserably to meet its fiduciary duties and is one of the worst boards in corporate America. I intend to hold them to account." Mr. Shepard continued: "It is high time for the boards of these two companies to do the right thing by their shareholders and policyholders.
Mr. Shepard announced these changes today to Item 4 of his Schedule 13D. Any interested property and casualty insurance company, hedge fund or investment banker is encouraged to call Mr. Shepard at (309) 310-1331.
Shepard makes bigger offer for ..., 3 Aug 2013 [cached]
Shepard makes bigger offer for Donegal Group stock
Gregory Mark Shepard didn't fly the white flag for long.
On Thursday, Aug. 1, he dropped his tender offer that would have increased his minority stake in Donegal Group.
But on Friday, Aug. 2, Shepard disclosed a new and bigger offer that would give him control of the firm.
Shepard, a disgruntled Donegal Group shareholder, said Aug. 2 that he is offering to buy 3.3 million Class B shares of Donegal Group stock.
He would pay $22 a share, for a total of $72.6 million.
The stock closed at $20.35 a share on Aug. 1. It closed at XXX a share on Friday, Aug. 2.
If successful, Shepard would own 53.5 percent of the voting power in the company.
That would give him control of the firm and let him put his nominees in most seats on the Donegal Group board.
Though Shepard has been sparring with Donegal Group management for years, he said he wants the deal to be "amicable."
An amicable transaction would be in the best interests of the firm, its shareholders and its employees, according to Shepard.
"On behalf of all (Donegal Group) shareholders, I sincerely hope that you accept my invitation," he said in a letter to the firm.
Shepard, of Bradenton, Fla., is an attorney and investor who's been a Donegal Group investor since 2005.
Several times he has sharply criticized management as ineffective and the firm as underperforming, suggesting it sell itself.
Donegal Group has defended the company's strategy and results.
In March, Shepard announced a tender offer to acquire 963,000 Class B shares for $30 each.
When the twice-extended deadline passed Wednesday with only 394,000 shares tendered, Shepard dropped the offer.
In unveiling the new offer Friday, Shepard again jabbed at Donald H. Nikolaus, Donegal Group president and chief executive officer.
Shepard said he reduced his offer to $22 because Nikolaus "apparently believes I am overpaying" at $30.
Shepard asks that the boards of Donegal Group and Donegal Mutual "do their fiduciary duty, and not let (Donegal Group) and Donegal Mutual continue as a Nikolaus family fiefdom."
Shepard said he was confident he could obtain financing for the transaction if it is done on an amicable basis.
"I have been in preliminary contact with a large investment bank, and with lending institutions," he said, "and have been informed that on an 'amicable' basis, there should be no problem in facilitating the acquisition of control of (Donegal Group), especially in light of the amount of capital I would contribute to the transaction."
Shepard did not specify the amount of capital he would put in.
If Donegal Mutual rebuffs him, Shepard said, he will rekindle his original plan to buy 963,000 Class B shares, but do so in the open market and in privately negotiated transactions.
Marietta- based Donegal on Thursday rejected ... [cached]
Marietta- based Donegal on Thursday rejected the Oct. 7 proposal of Gregory Mark Shepard, calling it "illusory. That\'s the same word Donegal used when it rebuffed the Bradenton lawyer\'s earlier overtures.','', 300)" onmouseout="hideddrivetip()">Donegal Group Rejects New Offer [Intelligencer Journal (Lancaster, PA)]
Mr. Shepard blasted the Boards of Donegal Mutual and Donegal Group for failing to adequately consider Mr. Shepard\'s October 7, 2013 proposal. Shepard: "These Board members really need to be reminded that their fiduciary duties under law are to the Donegal Group shareholders to maximize the value of the Donegal Group shares. Mr. Shepard further notes that Donegal...','', 300)" onmouseout="hideddrivetip()">Gregory Shepard Blasts Don Nikolaus for Once Again Rejecting an Amicable Transaction
In the amicable transaction proposed in his letter, Mr. Shepard would offer to purchase the 957,136 shares of Class B Common Stock of Donegal Group that are not already owned by him or Donegal Mutual at a negotiated price within a range of $33- $37 per share, and a mutual property and casualty insurance company would purchase the 9,021,350 shares of Class A Common...','', 300)" onmouseout="hideddrivetip()">Gregory Shepard Proposes Amicable Transaction to Donegal Group Inc.
Gregory Mark Shepard
Again, Donegal noted that Shepard had failed to obtain all the regulatory approvals needed for him to buy more Donegal stock.
Shepard is a frequent critic of Donegal, especially its practice of granting stock options to its management.
He calls the number of options excessive, saying they are "punishing" the stock's price and book value.
A minority Donegal shareholder since 2005, Shepard owns 9.99 percent of the company.
In March, Shepard offered to increase his minority stake to 22.7 percent.
In August, he upped his proposal, seeking to increase his stake 53.5 percent, which would have given him control of Donegal.
Donegal, which is controlled by Donegal Mutual, has consistently defended its management's performance and strategy.
In October, Shepard suggested Donegal accept one of two "amicable" alternatives for selling the company.
The first alternative would have had Shepard purchase all 957,136 shares of Donegal Class B stock not already owned by him or Donegal Mutual.
Also, an unidentified insurance firm would buy the 9.0 million Class A shares not already owned by him or Donegal Mutual.
The second alternative would have had Donegal or Donegal Mutual agree to be bought by the unidentified insurance firm for a negotiated per-share price.
Then Shepard would have sold his Donegal stock to the unidentified firm for the same per-share price.
21st Century Insurance | Investors | Board of Directors, 18 April 2004 [cached]
Gregory M. ShepardDirector
Chairman of the Board and President of American Union Insurance Company (AUIC) since 1985.Previously, Mr. Shepard also served as Chairman of the Board of Directors and President of Direct Auto Insurance Company, which changed its...
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