The prolonged takeover confrontation between US-listed dry bulk operator Genco Shipping & Trading and Greek rival Diana Shipping has intensified once again after Genco’s board unanimously rejected Diana’s latest cash offer of $24.80 per share.
The decision marks the third time Genco has turned down proposals from Diana since the takeover attempt began late last year, setting the stage for a high-stakes shareholder vote that could determine the company’s future leadership and strategic direction.
In its statement, Genco said the board—acting on the recommendation of an independent committee and supported by advisers Jefferies and Morgan Stanley—concluded that the revised bid still “meaningfully undervalues” the company and its fleet.
Genco argued that the offer remains below estimated net asset value, which analysts place between $26.66 and $27.10 per share, and does not include a sufficient control premium despite Diana’s intention to take effective control of the company. The US operator also pointed to improving conditions in the dry bulk market, stating it believes shareholders should benefit more fully from the upswing.
The company reiterated that it remains open to dialogue, but only if any future proposal reflects what it considers the full value of its assets and includes an appropriate premium.
Diana Shipping responded swiftly and firmly rejected Genco’s position. Chief executive Semiramis Paliou accused Genco’s board of refusing to engage constructively despite months of attempted discussions, arguing that no meaningful negotiations had taken place.
Diana also claimed that Genco has dismissed three successive offers despite what it describes as steadily improving terms, and criticised the board for not engaging directly with its proposals. The Greek owner further escalated the dispute by renewing its call for shareholder support ahead of Genco’s June 18 annual meeting, where it is seeking to replace all six members of the board with its own nominees.
Diana currently holds around 14.4% of Genco’s shares. Its campaign began in November with a $20.60-per-share proposal, followed by a $23.50 bid in March, which was later repeated in a formal tender offer in May. Last week, the company raised its offer again to $24.80 per share in an attempt to win shareholder backing.
Genco has consistently rejected the approach at each stage, previously describing the March bid as a “fire sale” and arguing that Diana has failed to account for the true value of its fleet and business platform. The US company also maintains that its shareholder return strategy and improving market conditions justify a higher valuation.
Diana, meanwhile, insists its offer is close to net asset value and has accused Genco of shifting valuation metrics to justify rejection. It has also highlighted rising advisory and defence costs incurred by Genco in resisting the takeover attempt.
What began as a conventional consolidation play has now evolved into one of the most closely watched takeover battles in the dry bulk sector. A combined entity would form one of the world’s largest publicly listed dry bulk operators, but for now both sides remain entrenched.
With Genco standing firm on valuation and Diana pushing aggressively for control, attention now turns to the June 18 shareholder meeting, which is expected to become the decisive battleground for the future of the company.
