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. In my opinion, Donegal Group is not the fiefdom for
the Nicholas family, no matter how hard Don
Nicholas tries to make it so. In my opinion,
shareholders of Donegal Group have suffered long enough through his
greed and lack of commitment to shareholder value."
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.
This press release is neither an offer to purchase nor a
solicitation of an offer to sell shares of Donegal. In
addition, this press release is not intended to, and does not,
constitute (1) a solicitation of a proxy, consent, or authorization
for or with respect to the annual meeting or any special meeting of
Donegal Group's shareholders, or (2) a solicitation of a consent or
authorization in the absence of any such meeting.
SOURCE Gregory M. Shepard