Genco Shipping & Trading rejected Diana Shipping's third buyout offer of $24.80 a share, calling the bid inadequate two weeks before a pivotal shareholder vote.
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Genco rejects Diana's $24.80 offer as proxy fight heads to June vote
Genco Shipping & Trading rejected Diana Shipping's third buyout offer of $24.80 a share, calling the bid inadequate two weeks before a pivotal shareholder vote.
"Genco's news release today makes clear that the Genco Board is not going to engage in a constructive dialogue regarding our proposal," Semiramis Paliou, chief executive officer of Diana Shipping, said in a statement.
The rejection marks the third time Diana has raised its bid since November 2025, when it first offered $20.60 a share. Diana increased to $23.50 in March and to $24.80 last week. Genco's board, advised by Jefferies and Morgan Stanley, said the offer remains below the company's net asset value, citing mean analyst estimates of $26.66 from firms including SEB, Clarkson Securities and Deutsche Bank.
The standoff sets up a June 18 shareholder meeting where Diana is seeking to elect six independent directors to Genco's board. Diana, which owns about 14.4 percent of Genco, has also extended its tender offer to June 26. The outcome will determine whether one of the dry-bulk shipping industry's most contentious takeover battles in years moves forward or stalls.
Diana has accused Genco's board of shifting its valuation methodology, noting the company relied on VesselsValue broker estimates for five years before switching to sell-side analyst projections. Shipping take-private transactions have historically been concluded at an average 20 percent discount to NAV, not at a premium, Diana said.
Genco reiterated it remains willing to meet with Diana "if and when they submit an offer that adequately compensates shareholders." The company said Diana's pattern of raising its bid without engaging in negotiations reflects an attempt to take control without paying full value.
The rejection leaves Genco shareholders with a binary choice at the June 18 meeting: retain the current board or elect Diana's slate, which could open the door to a deal. The tender offer's June 26 expiration sets a second deadline for resolution.
This article is for informational purposes only and does not constitute investment advice.
[1] Genco Shipping Rejects Diana Shipping Offer Over Net Asset Value - WSJ[2] Genco Rejects Third Offer from Diana Two Weeks Before Shareholder Meeting - The Maritime Executive[3] Genco Shipping rejects Diana Shipping’s revised $24.80 bid[4] Diana Shipping Inc. Comments on Genco Shipping & Trading's Rejection of $24.80 Per Share All-Cash Tender Offer[5] Genco board unanimously rejects Diana Shipping’s latest buyout offer
