Indianapolis-based Meridian Insurance Group’s board has unanimously rejected a takeover offer of $20 per share from Gregory Shepard, head of property and casualty insurance firm American Union Insurance Co. The board’s decision last week was followed by urging Meridian shareholders not to tender their shares. Shepard, through Meridian Insurance Group Acquisition Corp. and its parent, American Union Insurance, commenced the tender offer Aug. 31.
The board reportedly concluded that the offer does not reflect Meridian’s inherent value. The company’s largest shareholder, Meridian Mutual, and its officers and directors have indicated they will not tender their shares. These shareholders collectively hold a majority of the shares, making the tender offer’s success questionable.
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