Diana Shipping drops Genco tender offer but keeps $27.34 bid alive

Diana Shipping ended its tender offer for Genco Shipping after the July 24 expiration but kept its $27.34-a-share acquisition proposal alive, accusing Genco's board of stalling on negotiations.

"There has been no substantive engagement by Genco with Diana in more than five weeks since we made our increased offer on June 17," Diana said in a statement, calling Genco's characterization of advisor discussions "false and misleading."

The offer valued Genco at $24.80 in cash plus one Diana share, representing a 53 percent premium to Genco's closing price on Nov. 21, 2025, the last trading day before Diana's initial proposal. About 11.8 million shares — 31.6 percent of the outstanding stock not already owned by Diana — had been tendered before the offer expired. Diana noted a depositary system error may have affected the final count.

By terminating the tender offer, Diana removed what Genco had claimed was a legal barrier to negotiations. Genco said its board continues to review the proposal and will report second-quarter results on Aug. 5. Diana warned that continued delay carries real cost: Genco's fleet value has already declined about $51 million, or 3.4 percent, since vessel values peaked in early June.

Diana, the largest Genco shareholder, said it made two attempts at dialogue — a July 15 call where Genco sought basic information already public, and a July 21 call where Genco's advisors said providing feedback would trigger mandatory public disclosure. Genco issued a statement saying it "will continue to engage in good faith discussions" and that its Comprehensive Value Strategy is "delivering superior returns."

The dry bulk market has softened since Diana's June 17 offer, with vessel valuations at or near 15-year highs beginning to recede. Diana's fleet of 36 vessels with a combined 4.1 million deadweight tons gives it scale advantages in the fragmented dry bulk sector, where consolidation has been a recurring theme.

This article is for informational purposes only and does not constitute investment advice.