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Donegal shareholder again extends tender offer

By , - Last modified: May 21, 2013 at 10:46 AM

Holders of Donegal Group Inc. Class B stock now have until July 31 to take Gregory M. Shepard up on his offer to buy their shares.

Shepard announced today he is once again extending his tender offer to buy the 962,636 outstanding shares of Donegal Group’s Class B stock.

The extension will give Shepard more time to receive necessary regulatory approvals, he said in a statement.

This is the second extension of the tender offer. When announced March 20, the offer was to expire April 19; when that date passed, it was extended to Monday.

As of April 19, shareholders had tendered 362,745 shares, plus 8,872 submitted by guaranteed delivery. Since then, 6,548 of the 8,872 submitted shares have been tendered; the total number of shares tendered and submitted remains at 383,540, according to Shepard’s statements.

Shepard’s offer depends on his receiving at least 925,000 shares for purchase. Donegal Group’s leadership owns enough shares to keep him from reaching that figure.

Were the deal to occur, Shepard would have 22.7 percent of Donegal Group voting stock, up from 9.99 percent now.

Shepard has been pushing for Donegal to be merged into or acquired by another insurer, arguing the company is worth less as an independent firm.

Donegal Group Inc. is a downstream holding company formed by Donegal Mutual Insurance Co. Its shares trade on the Nasdaq under the ticker symbols DGICA and DGICB.


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