The takeover battle between Genco Shipping & Trading and Greek rival Diana Shipping has intensified once again after Genco’s board officially rejected Diana’s hostile tender offer and urged shareholders not to sell their shares.
The latest response marks the second rejection in just two months of Diana Shipping’s $23.50-per-share bid for the New York-listed dry bulk owner.
Diana first approached Genco in March with an acquisition proposal, but the offer was quickly dismissed by Genco’s board. Earlier this month, the Greek shipping company revived its push by taking the offer directly to shareholders through a hostile tender bid.
In a filing submitted to the US Securities and Exchange Commission, Genco stated that the proposal continues to “meaningfully undervalue” both the company’s assets and its long-term business prospects.
The board also argued that the offer fails to include an appropriate control premium for shareholders.
According to Genco, Diana’s offer price has remained unchanged despite rising dry bulk asset values and improving market fundamentals across the sector in recent months.
The company pointed to analyst estimates valuing Genco’s net asset value at between roughly $26.50 and $26.80 per share significantly above the current offer on the table.
Genco also defended its standalone strategy, insisting the company can create strongr long-term value independently rather than through a takeover.
Management once again highlighted what it describes as its “comprehensive value strategy,” built around shareholder returns, disciplined capital allocation, dividend distribution and exposure to a potentially strengthening dry bulk market.
The company added that both Jefferies and Morgan Stanley concluded the Diana proposal was financially inadequate for Genco shareholders.
The increasingly tense exchange has become one of the shipping industry’s most closely watched corporate battles this year.
Diana Shipping, led by Semiramis Paliou, has steadily increased pressure on Genco management in recent months, arguing that governance changes and strategic adjustments are needed to unlock additional shareholder value and improve the company’s market positioning.
Genco, however, continues to strongly defend its current leadership and board structure while seeking shareholder support ahead of its annual meeting scheduled for June 18.
