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This profile was last updated on 8/3/13  and contains information from public web pages.

Mr. Gregory Mark Shepard

Wrong Gregory Mark Shepard?

Investor

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
Background

Employment History

Board Memberships and Affiliations

12 Total References
Web References
Shepard makes bigger offer for ...
lancasteronline.com, 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 ...
insurancenewsnet.com [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
ir.i21.com, 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...
Gregory Mark Shepard said ...
lancasteronline.com, 1 Aug 2013 [cached]
Gregory Mark Shepard said Thursday that he has canceled his offer to buy 963,000 Class B shares of Donegal for $30 a share.
Had Shepard's offer been successful, his stake in Donegal would have risen to 22.7 percent from 9.99 percent.
The announcement comes after Wednesday's deadline for tendering shares passed with only 394,000 shares tendered.
Shepard, who already had extended the deadline twice, said he will not extend the deadline again.
Rather, he will return the tendered shares to their owners, ending his four-month campaign.
Donegal, a Marietta-based insurance holding company, had criticized Shepard's $28.9 million offer as "illusory."
The company pointed out that Shepard's offer needed the approval of six state insurance departments, among other clearances, none of which he obtained.
Donegal also noted that Shepard said he needed at least 925,000 shares to be tendered to go forward with his purchase.
Hitting that threshold would have required at least some Donegal directors or management to tender their shares, which the directors and management vowed not to do.
Shepard unveiled his offer in March. The price represented a 42 percent premium over the Class B price immediately before his announcement.
Initially, Shepard made the offer conditional on two main points.
He wanted to be allowed to appoint three directors to the board of Donegal and three to the board of its majority owner, Donegal Mutual.
Shepard also wanted Donegal to agree to award no new stock options to its leadership.
He later dropped those conditions.
Shepard, an attorney and Donegal investor since 2005, is a frequent critic of Donegal's board and management.
He says the company is underperforming, so it should consider a sale or merger. Donegal defends its business strategy as effective.
Shepard, of Bradenton, is the former chairman and president of American Union Insurance Co. and former co-owner of Country Acres Land Corp., an Illinois developer.
Gregory Mark Shepard, a ...
www.insurancenewsnet.com, 25 Mar 2013 [cached]
Gregory Mark Shepard, a frequent critic of the company, this week offered $30 a share for 963,000 of Donegal Group\'s Class B shares. Donegal Group is urging its Class B shareholders to take no action until the Donegal...','', 300)" onmouseout="hideddrivetip()">Investor Wants More Of Donegal Group ; Florida Lawyer Makes Offer Of $28.9 Million To Boost His Share To 22.7 Percent. [Intelligencer Journal (Lancaster, PA)]
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