Unfazed by a unanimous rejection of a previous tender offer by the board of Meridian Insurance Group Inc. (MIG) and a majority of the company’s shares pledging to remain independent, Gregory Shepard’s American Union Insurance Co. upped its offer $5 to $25 per share one week ago. The tender offer is now worth a total of $196 million. Shepard himself owns 20% of the $115 million market cap property and casualty insurance company, but about 53% of the company is owned by Meridian Mutual and MIG’s executives. One analyst conjectured that Shepard knew the majority of shares would be against him but made his bid anyway, in order to put the company in play and cash out his stake.
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