Schedule 13D/A
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 3 )*
(Name of Issuer)
Class A Common Stock
Class B Common Stock
(Title of Class of Securities)
Class A: 257701201
Class B: 257701300
(CUSIP Number)
Gregory M. Shepard
7028 Portmarnock Place
Bradenton, FL 34202
(309) 310-1331
(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications)
(Date of Event Which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box. o
Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See Rule 13d-7 for other parties to whom copies are to be sent.
* The remainder of this cover page shall be filled out for a reporting persons initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed to be filed for the purpose of Section 18 of the Securities Exchange Act of 1934 (Act) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).
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CUSIP No. |
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257701201
257701300 |
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1 |
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NAMES OF REPORTING PERSONS
Gregory M. Shepard |
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2 |
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CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
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(a) o |
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(b) o |
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3 |
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SEC USE ONLY |
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4 |
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SOURCE OF FUNDS (SEE INSTRUCTIONS) |
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PF |
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CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |
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þ |
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6 |
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CITIZENSHIP OR PLACE OF ORGANIZATION |
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United States of America
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7 |
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SOLE VOTING POWER |
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NUMBER OF |
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Class A 3,602,900; Class B 397,100 |
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SHARES |
8 |
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SHARED VOTING POWER |
BENEFICIALLY |
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OWNED BY |
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-0- |
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EACH |
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SOLE DISPOSITIVE POWER |
REPORTING |
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PERSON |
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Class A 3,602,900; Class B 397,100 |
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WITH |
10 |
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SHARED DISPOSITIVE POWER |
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-0- |
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11 |
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AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON |
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Class A 3,602,900; Class B 397,100 |
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CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS) |
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PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) |
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Class A 18.04% ; Class B 7.12% |
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14 |
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TYPE OF REPORTING PERSON (SEE INSTRUCTIONS) |
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IN |
Page 2 of 6
SCHEDULE 13D
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ITEM 1. |
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SECURITY AND ISSUER. |
The Schedule 13D filed with the Securities and Exchange Commission on July 12, 2010 (the Initial
13D) by the Filing Person with respect to the Class A Shares and Class B Shares of Donegal Group
Inc., a Delaware corporation (the Issuer), is hereby amended to furnish the additional
information set forth herein. All capitalized terms contained herein but not otherwise defined
shall have the meanings ascribed to such terms in the Initial 13D.
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ITEM 3. |
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SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION. |
ITEM 3 OF THE INITIAL 13D IS HEREBY AMENDED TO ADD THE FOLLOWING:
The Filing Person owns 3,602,900 Class A Shares and 397,100 Class B Shares purchased for
$51,924,532 and $6,639,668, respectively (including commissions). The source of funding for the
purchase of these Shares was personal funds.
ITEM 4 OF THE INITIAL 13D IS HEREBY AMENDED TO ADD THE FOLLOWING:
On November 7, 2011, the Filing Person submitted the following proposal to be presented and voted
upon at the Issuers 2012 Annual Meeting of Shareholders:
Resolved, that the shareholders of Donegal Group Inc. (DGI) hereby request that the Board of
Directors (1) appoint a committee of independent, non-management directors who are authorized and
directed to work with Donegal Mutual Insurance Company (DMIC) to explore strategic alternatives
to maximize shareholder value, including consideration of a merger of DMIC with another mutual
insurer followed by the sale or merger of DGI, (2) instruct such committee to retain a leading
investment banking firm to advise the committee with respect to such strategic alternatives and (3)
authorize the committee and investment banking firm to solicit and evaluate offers for the merger
of DMIC followed by the sale or merger of DGI.
A copy of the proposal and supporting statement are attached hereto as Exhibit 7.8.
Page 3 of 6
The Filing Person intends to review his investment in the Issuer on a continuing basis. Depending
on various factors including, without limitation, the Issuers financial position, results and
strategic direction, price levels of the Class A and Class B Shares, the Issuers response to the
actions suggested by the
Filing Person, actions taken by management and the Board of Directors of the Issuer, other
investment opportunities available to the Filing Person and capital availability and applicable
regulatory and legal constraints, conditions in the securities and capital markets, and general
economic and industry conditions, the Filing Person may, from time to time and at any time, in the
future take such actions with respect to his investment in the Issuer as he deems appropriate
including, but not limited to: communicating with management, the Board, other stockholders,
industry participants and other interested or relevant parties (including financing sources and
financial advisors) about the Issuer or proposing a potential or other transaction involving the
Issuer and about various other matters, including the operations, business, strategic plans, assets
and capital structure of the Issuer or one or more of the other items described in subparagraphs
(a)-(j) of Item 4 of Schedule 13D; requesting or proposing one or more nominees to the Board of
Directors of the Issuer; purchasing additional securities of the Issuer in the open market or
otherwise; entering into financial instruments or other agreements that increase or decrease the
Filing Persons economic exposure with respect to his investment in the Issuer; and/or engaging in
any hedging or similar transactions with respect to such holdings. The Filing Person reserves the
right to change his current plans and intentions with respect to any and all matters referred to in
Item 4 of Schedule 13D based on any of the foregoing factors or otherwise or to sell or distribute
some or all of his respective holdings in the Issuer, at any time and from time to time, in the
open market, in private transactions or otherwise.
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ITEM 5. |
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INTEREST IN SECURITIES OF THE ISSUER. |
ITEMS 5 (a) AND 5 (b) OF THE INITIAL 13D ARE HEREBY AMENDED AND RESTATED IN THEIR ENTIRETY AS
FOLLOWS:
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a) |
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As of the close of business on November 7, 2011, the Filing Person may be deemed to
beneficially own, in the aggregate, 3,602,900 Class A Shares and 397,100 Class B Shares,
representing approximately 18.04% and 7.12%, respectively, of the Issuers outstanding
Class A Shares and Class B Shares (based upon the 19,975,609 Class A Shares and 5,576,775
Class B Shares stated to be outstanding as of October 31, 2011 by the Issuer in the
Issuers Form 10-Q, filed with the Securities and Exchange Commission on November 4, 2011). |
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b) |
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The Filing Person has sole voting power and sole dispositive power with respect to
3,602,900 Class A Shares and 397,100 Class B Shares. The Filing Person has voting power in
the aggregate equal to approximately 9.99%. |
Page 4 of 6
ITEM 5 (c) OF THE INITIAL 13D IS HEREBY AMENDED TO ADD THE FOLLOWING:
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c) |
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The following table sets forth all purchases with respect to Class A Shares and Class B
Shares effected during the past sixty (60) days by the Filing Person. All such
transactions were effected in the open market, and the table includes commissions paid. |
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Purchase |
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Price |
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# of Class A |
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Per |
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Shares |
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Amount |
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Date |
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Share |
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Purchased |
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Paid |
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11/07/11 |
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13.18 |
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400 |
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5,277.00 |
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Sale |
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Price |
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# of Class B |
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Per |
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Shares |
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Amount |
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Date |
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Share |
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Sold |
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Received |
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11/07/11 |
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16.00 |
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360 |
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5,756.20 |
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ITEM 7. |
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MATERIAL TO BE FILED AS EXHIBITS. |
7.8 |
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Proposal and Supporting Statement |
SIGNATURE
After reasonable inquiry and to the best of his knowledge and belief, the undersigned
certifies that the information set forth in this statement is true, complete and correct.
DATED: November 9, 2011
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/s/ Gregory
M. Shepard
Gregory
M. Shepard
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Page 5 of 6
Exhibit Index
7.8 |
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Proposal and Supporting Statement |
Page 6 of 6