The majority shareholder of Donegal Group has rejected a Florida investor's $72.6 million offer to take control of Donegal Group.
Donegal Mutual Insurance, which owns 65.9 percent of Donegal Group, said Friday that the offer is not in its best interest.
The Marietta-based mutual insurance firm disclosed its decision in a filing with the Securities and Exchange Commission.
Earlier this month, Gregory Mark Shepard had proposed an "amicable" takeover of Donegal Group.
Shepard offered to buy another 3.3 million Class B shares of Donegal Group stock at $22 per share.
At the time, Class B shares were trading at $20.35. The stock closed Friday at $19.10.
That purchase would have boosted his stake in Donegal Group from 9.99 percent to 53.5 percent.
This proposal came after Shepard withdrew his March tender offer to buy 963,000 Class B shares for $30 each. That move would have raised his stake to 22.7 percent.
Donegal Group urged its shareholders to spurn the tender offer.
Shepard is a Bradenton attorney who's been a Donegal Group shareholder
He's been a harsh critic of Donegal Group in recent years, saying the company is an underperformer that should be sold.
Donegal Mutual said Friday that its board had unanimously concluded that the proposal was "not in the best interests" of Donegal Mutual, its policyholders and other constituencies.
Donegal Mutual did not elaborate.