The takeover fight between Diana Shipping and Genco Shipping & Trading is becoming increasingly aggressive, with the Greek dry bulk owner now warning shareholders that Genco’s stock price could fall significantly if its takeover offer is ultimately withdrawn.
Athens-based Diana, which is currently Genco’s largest shareholder, argued that the New York listed company’s current market valuation is being largely supported by Diana’s all-cash bid of $23.50 per share rather than by Genco’s standalone fundamentals.
According to Diana, Genco’s net asset value stood at around $25.40 per share at the end of March, based on VesselsValue estimates. The company added that this figure excludes at least $0.80 per share linked to additional change-of-control costs.
However, Diana stressed that Genco has historically traded at an average discount of roughly 30% to its NAV since 2020. Based on that trend, the Greek owner believes the stock could slide back toward the $17.50 range if the takeover proposal disappears.
The latest comments mark another escalation in the increasingly tense standoff between the two shipping companies, as Diana openly accuses Genco’s leadership of damaging shareholder value by continuing to reject the proposal.
Diana Shipping chief executive Semiramis Paliou said the current share price reflects the premium created by Diana’s offer rather than Genco’s historical market performance.
“Our $23.50 per share all-cash offer has brought Genco’s share price to a valuation it has never sustained on its own,” Paliou stated.
At the same time, Diana revealed that it has reduced part of its stake in Genco while still keeping what it describes as a significant ownership position in the company.
The shipowner explained that proceeds from those share sales, combined with $1.443bn in fully committed financing, would support the funding required for a potential full acquisition of Genco if an agreement is eventually reached.
Diana insisted that selling part of its stake should not be seen as a loss of confidence in the transaction. Instead, the company argued that the move strengthens its ability to complete a deal efficiently.
The dispute is now also shifting toward corporate governance. Diana is actively campaigning to replace six members of Genco’s board during the company’s annual shareholder meeting scheduled for June 18.
The company is asking shareholders to back its six proposed independent director candidates Gustave Brun-Lie, Paul Cornell, Chao Sih Hing Francois, Jens Ismar, Viktoria Poziopoulou and Quentin Soanes while also tendering shares into the standing cash offer.
Diana’s tender offer is currently set to expire on June 2 unless it is extended.
The latest attack comes only days after Genco’s board once again rejected Diana’s revised proposal, arguing for a second time that the offer substantially undervalues both the company and its long-term growth prospects.
Earlier this week, Genco chairman and CEO John Wobensmith also sent a fresh letter to shareholders defending the company’s strategy and accusing Diana of attempting to gain control of the business without offering adequate value in return.
