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Exhibit (a)(1)(X)
To: BUSINESS WIRE AMY LYNCH
Fax #: 312-573-0019 Ph. #: 888-292-4446
Date: October 26, 2000
Contact: Mr. Gregory M. Shepard
Chairman and President
American Union Insurance Company
Phone: (309) 827-5968
AMERICAN UNION INSURANCE COMPANY RESPONDS TO ANNOUNCEMENT BY MERIDIAN INSURANCE
GROUP AND STATE AUTO FINANCIAL CORPORATION.
On Wednesday, October 25, 2000, Meridian Insurance Group, Inc. (Nasdaq: MIGI)
and State Auto Financial Corporation (Nasdaq: STFC) announced that their
principal stockholders, Meridian Mutual Insurance Company and State Automobile
Mutual Insurance Company, have agreed to merge and that the outstanding publicly
owned shares of Meridian Insurance Group are to be purchased by State Automobile
Mutual for $30 per share upon the closing of the merger.
On September 18, 2000, American Union Insurance Company, Meridian Insurance
Group Acquisition Corporation, Gregory M. Shepard, and Tracy M. Shepard offered
to purchase 50.1% of the outstanding common stock of Meridian Insurance Group
for $25 per share.
On August 30, 2000, American Union filed a lawsuit against Meridian Insurance
Group and its directors in the United States District Court for the Southern
District of Indiana alleging the defendants' wrongful conduct in connection with
Meridian's 1997 vote to "opt in" to the Indiana take-over statutes, and for
other breaches of fiduciary duties.
Today, in response to the announcement by Meridian Insurance Group and State
Auto Financial, Gregory Shepard said "I have long believed that Meridian's stock
is tremendously undervalued. I was glad that Meridian's Board expressed a
willingness to consider options for enhancing shareholder value. I am reviewing
the details of the proposed transaction between Meridian and State Auto. Until I
have carefully reviewed the terms, I will not be in a position to say whether
the proposed transaction is the best option for increasing shareholder value or
whether it fully reflects the value of the company. I will wait for further
details on the proposed transaction before I decide whether or not I believe it
is in the best interests of Meridian's stockholders and American Union. I expect
to make a decision regarding how to proceed with the tender offer and the
lawsuit in the near future."
Shepard stated, "Over the last 2 months, I have attempted to call every Meridian
shareholder (other than the insiders) who had over 1,000 shares. I did not speak
with one shareholder who did not want to see the company either sold to me or
another third party."
American Union Insurance Company is a Bloomington, Illinois based property and
casualty insurance company originally chartered in 1916 by L.F. Shepard as Union
Automobile Insurance Association. The present name was adopted in 1998. Today
50% of American Union's common stock is owned by Gregory M. Shepard and 50% by
Tracy M. Shepard, who are brothers. Meridian Insurance Group Acquisition
Corporation is a wholly owned subsidiary of American Union Insurance Company.
