The long-running takeover dispute between Diana Shipping and Genco Shipping & Trading has taken another turn, with Diana withdrawing its offer after Genco submitted counter proposals that the Greek shipowner described as being “completely disconnected from reality.”
Genco, meanwhile, rejected Diana’s assessment, calling the characterization misleading.
The latest exchange marks the most recent development in months of tension surrounding Diana’s unsolicited attempt to acquire all outstanding Genco shares that it does not already own.
Diana withdraws its offer
On 14 August, Diana formally withdrew its offer, which had consisted of $24.80 in cash per Genco share plus one Diana share valued at $2.54.
The proposed consideration was subject to downward adjustments reflecting Genco dividends paid since the original offer was launched.
Diana said its effort to begin negotiations had originally involved a proposal from its advisers worth $27.50 per Genco share in cash plus three Diana shares, with Genco valuing each Diana share at $1.
That initial proposal also stipulated that there would be no dividend adjustments, which Diana said would prevent Genco shareholders from being disadvantaged because of the timing of the transaction.
Takeover battle remains unresolved
The withdrawal follows repeated accusations from Diana that Genco had failed to meaningfully engage with its takeover proposal.
Genco’s counter proposals ultimately prompted Diana to remove its offer from the table, although the dispute between the two companies is unlikely to disappear entirely.
Diana remains Genco’s largest shareholder and made clear that its withdrawal does not mean it is stepping away from the company.
Both shipping groups have now publicly presented sharply different interpretations of the negotiations, with Diana criticizing Genco’s response and Genco pushing back against what it considers a misleading portrayal of its position.
The latest development leaves the future of the proposed combination uncertain after months of public exchanges between the two dry bulk shipping companies.
