-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, HBSxlCc60CclX+Ezi1MgNRhk8MGr5BNZbcx06mjWht7892i1ePF6/A6OBvo//pYc eF6qIOp7VWNlw/xabCWzNw== 0000074931-96-000014.txt : 19960525 0000074931-96-000014.hdr.sgml : 19960525 ACCESSION NUMBER: 0000074931-96-000014 CONFORMED SUBMISSION TYPE: SC 14D1/A PUBLIC DOCUMENT COUNT: 2 FILED AS OF DATE: 19960524 SROS: NYSE SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: GUARANTY NATIONAL CORP CENTRAL INDEX KEY: 0000044358 STANDARD INDUSTRIAL CLASSIFICATION: FIRE, MARINE & CASUALTY INSURANCE [6331] IRS NUMBER: 840445021 STATE OF INCORPORATION: CO FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 14D1/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-43461 FILM NUMBER: 96571886 BUSINESS ADDRESS: STREET 1: 9800 SOUTH MERIDIAN BOULEVARD CITY: ENGLEWOOD STATE: CO ZIP: 80112-5901 BUSINESS PHONE: 3037548400 MAIL ADDRESS: STREET 1: 9800 SOUTH MERIDIAN BLVD CITY: ENGLEWOOD STATE: CO ZIP: 80112-5901 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: ORION CAPITAL CORP CENTRAL INDEX KEY: 0000074931 STANDARD INDUSTRIAL CLASSIFICATION: FIRE, MARINE & CASUALTY INSURANCE [6331] IRS NUMBER: 956069054 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 14D1/A BUSINESS ADDRESS: STREET 1: 600 FIFTH AVENUE STREET 2: 24TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10020-2302 BUSINESS PHONE: 212-332-8080 MAIL ADDRESS: STREET 1: 600 FIFTH AVENUE STREET 2: 24TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10020-2302 FORMER COMPANY: FORMER CONFORMED NAME: EQUITY FUNDING CORP OF AMERICA DATE OF NAME CHANGE: 19760518 FORMER COMPANY: FORMER CONFORMED NAME: TONGOR CORP OF AMERICA DATE OF NAME CHANGE: 19670330 FORMER COMPANY: FORMER CONFORMED NAME: TONGOR CORP DATE OF NAME CHANGE: 19661024 SC 14D1/A 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 AMENDMENT NO. 1 SCHEDULE 14D-1 Tender Offer Statement Pursuant to Section 14(d)(1) of the Securities Exchange Act of 1934 Guaranty National Corporation ------------------------------ (Name of Subject Company) Orion Capital Corporation The Connecticut Indemnity Company Connecticut Specialty Insurance Company Design Professionals Insurance Company EBI Indemnity Company Employee Benefits Insurance Company The Fire and Casualty Insurance Company of Connecticut Security Insurance Company of Hartford --------------------------------------- (Bidder) Common Stock, par value $1.00 per share ---------------------------------------- (Title of Class of Securities) 401192109 -------------------------------------- (CUSIP Number of Class of Securities) Michael P. Maloney, Esq. Vice President and General Counsel ORION CAPITAL CORPORATION 600 Fifth Avenue New York, New York 10020-2302 (212) 332-8080 - ------------------------------------------------------------ (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications on Behalf of Bidder) Copy to: John J. McCann, Esq. Donovan Leisure Newton & Irvine 30 Rockefeller Plaza New York, New York 10112 (212) 632-3000 This Statement is filed by Orion Capital Corporation ("Orion") and the following of its wholly-owned subsidiaries: The Connecticut Indemnity Company, Connecticut Specialty Insurance Company, Design Professionals Insurance Company, EBI Indemnity Company, Employee Benefits Insurance Company, The Fire and Casualty Insurance Company of Connecticut and Security Insurance Company of Hartford (collectively with Orion, the "Purchasers") relating to the tender offer of the Purchasers to purchase up to 4,600,000 shares of common stock, par value $1.00 per share (the "Shares"), of Guaranty National Corporation, a Colorado corporation (the "Company"). This Statement amends the Schedule 14D-1 of the Purchasers, dated May 8, 1996 (the "Schedule 14D-1"), by incorporating by reference herein the information set forth in the press release dated May 23, 1996 of Orion attached as Exhibit (a)(9) hereto. This Statement also amends Items 3, 10 and 11 of the Schedule 14D-1 by adding the information set forth below. Except as otherwise indicated herein, the Schedule 14D-1 remains unchanged in all respects. Capitalized terms not otherwise defined herein are defined as set forth in the Schedule 14D-1 or in the Offer to Purchase of the Purchasers, dated May 8, 1996. - 2 - Item 3. Past Contacts, Transactions or Negotiations With the Subject Company -------------------------------------- The information set forth in Item 3 of the Schedule 14D-1 is hereby supplemented as follows: On May 21, 1996, Messrs. Gruber, Sanborn and Shepherd participated by conference telephone in a meeting of the Board of Directors of the Company called to consider a report from a Special Committee of the Board which had been authorized to evaluate the Offer. The Chairperson of the Special Committee reported at the outset that Salomon Brothers, Inc. had been retained to evaluate the Offer to Purchase and outlined Salomon's fee arrangement. Mr. Gruber pointed out that the engagement and incentive fee structure raises serious questions about the objectivity and fairness of the evaluation process. The Special Committee made no response to those observations. At the meeting, and at the request of the Chairman of the Special Committee, Mr. Gruber responded to questions concerning the Offer to Purchase. Mr. Gruber affirmed in his responses to the Special Committee several matters which had previously been set forth in the Offer to Purchase, as follows: - 3 - (a) The Purchasers continue to believe that the offered price of $17.50 per Share is fair and adequate and the Purchasers have no present intention to increase or reduce that price. (b) The Purchasers intend to increase their aggregate holdings to approximately 80% of the outstanding Shares of the Company, not more. (c) The Purchasers believe that their offer to stockholders of the Company to accept all Shares tendered (subject to possible proration) is more fair than to impose (as was apparently suggested by the Company's advisors) a minimum number of Shares which must be tendered before any Shares will be accepted. (d) The Purchasers do not expect that either delisting or deregistration of the Company's Shares will occur as a result of the completion of the Offer. (e) The Purchasers have no present intention to seek a merger or other business combination with the Company. (f) The Purchasers expect that the Company will in the future have a Board of Directors whose members include persons who are independent of and not employed by or affiliated with Orion or the Company. The Purchasers expect that any future service, insurance or other contractual arrangements between the Company and Orion (or subsidiaries of - 4 - either) should, and will, continue to be subject to review by the entire Board of Directors of the Company and, where required, by insurance regulatory authorities. At the request of the Special Committee, following the meeting of the Board of Directors, Mr. Gruber and the Purchasers' legal and financial advisors met at Orion's New York City offices with the financial advisors to the Special Committee and legal counsel to those advisors. Members of the Special Commmittee participated by telephone. The Special Committee's advisors asked Mr. Gruber substantially the same questions as had previously been answered for the Board of Directors. Mr. Gruber and his advisors were then asked to leave the meeting so that the Special Committee could consult with its advisors. When Mr. Gruber was invited to return, he was informed that the Company would make a filing on Schedule 14D- 9 in which it would decline to make any recommendation with respect to the Offer. Item 10. Additional Information. ----------------------- The information set forth in Item 10 of the Schedule 14D-1 is hereby supplemented as follows: Orion has been served with a complaint in an action entitled Eugenia Gladstone Vogel v. Guaranty National Corporation, et al. which has been filed in the Supreme Court - 5 - for the State and County of New York. The complaint seeks damages and other relief allegedly arising out of the Offer to Purchase. In Orion's opinion the claims made in the complaint are without merit and Orion intends vigorously to defend the litigation. Orion understands that two other actions have been filed in the state courts in Colorado alleging similar claims and seeking similar relief. Orion has not been served in either of those actions. Item 11. Material to be Filed as Exhibits --------------------------------- (a) (9) Press Release dated May 23, 1996 of Orion Capital Corporation - 6 - SIGNATURE After due inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct. Dated: May 23, 1996 ORION CAPITAL CORPORATION By /s/ Michael P. Maloney -------------------------- Vice President, General Counsel and Secretary THE CONNECTICUT INDEMNITY COMPANY CONNECTICUT SPECIALTY INSURANCE COMPANY DESIGN PROFESSIONALS INSURANCE COMPANY EBI INDEMNITY COMPANY EMPLOYEE BENEFITS INSURANCE COMPANY THE FIRE AND CASUALTY INSURANCE COMPANY OF CONNECTICUT SECURITY INSURANCE COMPANY OF HARTFORD By /s/ Michael P. Maloney --------------------------- Senior Vice President - 7 - EXHIBIT INDEX Exhibit Description - ------- ------------ (a)(9) Press Release dated May 23, 1996 of Orion Capital Corporation - 8 - EX-99.A.9 2 Exhibit (a)(9) From: Vincent T. Papa Dawn Dover (212) 332-8080 Robert Siegfried Jeanne Hotchkiss Kekst and Company (860) 674-6754 (212) 593-2655 FOR IMMEDIATE RELEASE ORION CAPITAL PROCEEDING WITH CASH TENDER OFFER FOR GUARANTY NATIONAL SHARES New York, New York, May 23, 1996 -- Orion Capital Corporation acknowledged today that it has received a copy of a filing on Schedule 14D-9 made by Guaranty National Corporation, reporting that a Special Committee of Guaranty National's Board of Directors declined to make any recommendation with respect to the Offer to Purchase. Commenting on the filing, Alan R. Gruber, the Chairman and Chief Executive Officer of Orion Capital, said: "We believe that the decision to make no recommendation is appropriate and entirely consistent with Orion Capital's desire to make the offer available to each and every stockholder of Guaranty National, allowing each stockholder to make his or her own decision as to whether to tender." Orion's cash offer at $17.50 per share is presently scheduled to remain open until midnight on June 5, 1996. Subject to the terms and conditions of the Offer, if shares are accepted for purchase all shares validly tendered will be accepted, subject to proration if more than 4,600,000 shares are validly tendered. Orion Capital also stated today that it has been served with a complaint in an action entitled Eugenia Gladstone Vogel v. Guaranty National Corporation, et al. which has been filed in the Supreme Court for the State and County of New York. The complaint seeks damages and other relief allegedly arising out of the Offer to Purchase. An Orion spokesperson stated that in Orion's opinion the claims made in the complaint are without merit and that Orion intends vigorously to defend the litigation. The spokesperson stated that he understood that two other suits have been filed in the state courts in Colorado alleging similar claims and seeking similar relief. Orion has not been served in either of these actions. Orion Capital Corporation is engaged in the specialty property and casualty insurance business through wholly-owned subsidiaries which include EBI Companies, DPIC Companies, Connecticut Specialty Insurance Group, SecurityRe Companies and Wm. H.McGee & Co. Inc., as well as through its 49.5% ownership interest in Guaranty National Corporation. ### -----END PRIVACY-ENHANCED MESSAGE-----