Dream on. They need public company for their acquisitions. Stock will live and die on earnings and dividends. think it will fall from here.
I would hope so. There are 780 some families relying on the company for their homes etc. I am sick of people with money playing with other peoples lives just to make a buck!!
As expressed by Don. They are looking for acquisitions all the time and cannot make same without a public company. Therefore no way they will take company private. Good luck but no big move here unless Don retires.
Earnings on Friday and word is the mutual will announce
an offer to purchase the remaining 33% of stock they do not already own.
This does make sense as they have the funds to complete the transaction.
Sentiment: Strong Buy
Be careful - you testify in court for "the policyholders" in situations similar to this.
Bet Donegal Mutual already has you hired. SHAREHOLDERS HAVE RIGHTS.
Even if the board of Donegal Group voted to accept Shephard's proposal, the Donegal MUTUAL board should vote NOT to sell the MUTUAL's shares for no consideration, because that would be terrible for the mutual policyholders, who elect the Donegal Mutual board. No one would pay $30-something per share for all Donegal Group shares (including the shares owned by Donegal Mutual).
What do you not understand? The Board has a legal duty to maximize
shareholder value. In the current climate, they had better do so.
You get #$%$ in jail to eat - right?
I'm EXTREMELY familiar with the Harleysville deals as well as the ALLIED deals. But i don't understand the comment about apple dumplings, the board, and the fog. Can you explain?
Mr. Schiff: Please be very careful on this. Please review the purchase of Harleysviile
Group/Harleysviile Mutual from Nationwide Mutual on Sept. 28, 2011. There is no
apple dumpling in jail. Get the Board's out of the fog = employee.
He's offered $34-37 to buy outstanding shares of B. I believe that also Pushes A am I right? Also, when can we expect to see this?
Seems like you are the only individual that understand the structure
of Donegal. Almost exact like HGIC excluding the B shares yet both have same amount of voting rights - 66 percent with the mutual shell's Don and Mike set up.
That is what happened in the Nationwide takeout of Harleysville 2 years ago.
Donegal and Harleysville were structured the same way. The underperformance
of DGICA and DGICB is glaring.
Why is Donegal only buying the class B shares?
Answer: They have the voting power and are worth 40 plus per share.
That is the reason Shepard is offering 33-37.
Sentiment: Strong Buy
He wants to company sold, but in a transaction where the outside shares get paid much more than they're worth ($30's) and the shares owned by the mutual get paid nothing! That's right: NOTHING. In short, he wants another mutual insurer to take buy out the public for a huge price an then take over Donegal Mutual without paying a cent for their shares.
(89 percent and 54 percent premiums for dgica would put its trade price at $27.55 and $22.45, respectively)
According to Reuters, average premium is 14 percent for 94 companies in prop. and cas. insurance industry. Two-thirds of the companies exhibit a premium. Average premiums for 39 companies with higher premiums than dgica is 89 percent and median is 54 percent.
In this case, what has been driving up A shares in both price and volume despite the declining market in the past 3 days (DGICA up 10%, DJ down 2%). I have never felt so ignorant and confused regarding a stock that I hold.