The long-running dispute between Diana Shipping and Genco Shipping & Trading has escalated into a public relations battle this week as both bulker owners launched fresh actions targeting shareholders ahead of a looming proxy fight. New York-listed Genco issued a detailed rebuttal accusing Diana of spreading "false and misleading claims" in its campaign to gain influence over the company.
The Greek owner Diana unveiled a dedicated campaign website as part of its push to "unlock immediate value" at Genco. Diana's document outlined grievances with Genco's capital allocation and board performance, framing its push as an effort to accelerate shareholder value through board change and strategic action. Genco responded with a "myths and facts" presentation aimed at dismantling Diana's arguments directly to shareholders.
Among the points challenged by Genco was Diana's claim that the company had underperformed its peers. Genco argued that its total shareholder return had outpaced both Diana and the broader dry bulk sector over multiple periods, including one-year, three-year and five-year timelines. The company also disputed Diana's suggestion that Genco was trading at a steep discount to net asset value, arguing that the rival owner was relying on outdated fleet values and selective data. According to Genco, current analyst estimates place the company's net asset value between roughly $26.50 and $26.80 per share, above Diana's previously disclosed $23.50-per-share proposal.
Genco further accused Diana of attempting to secure control without paying shareholders an appropriate premium. "There is no basis for trusting Diana," Genco stated, claiming the rival owner had a history of pursuing transactions favouring insiders over outside shareholders. The company defended its financial and operating performance, pointing to stronger first-quarter results and improved market conditions across the dry bulk sector. It rejected Diana's criticism of its capital allocation strategy, saying its dividend policy and share buyback programme had delivered significant returns while maintaining balance sheet discipline.
Diana continued to press ahead with its campaign, arguing that change is needed at Genco to unlock value and improve strategic direction. The company led by Semiramis Paliou launched a campaign website aimed at persuading shareholders to support its board nominees and broader proposals ahead of the annual meeting. With the June 18 shareholder meeting approaching, both companies are fighting to secure investor backing, and shareholder reaction will determine the next move in this contested battle over strategy, governance and control.
Key Takeaways:
1. The proxy fight between Diana Shipping and Genco Shipping has escalated into a public relations duel with dedicated campaign sites and counter-rebuttals.
2. Genco disputed Diana's claims through a 'myths and facts' presentation, arguing its net asset value stands at $26.50-$26.80 per share versus Diana's $23.50 proposal.
3. Diana is demanding board changes to unlock value at Genco while steadily building up its stake in the company.
4. Genco accused Diana of attempting to gain control without paying an appropriate premium and having a history of transactions favouring insiders.
5. The June 18 annual shareholder meeting will be a critical turning point as both sides fight to secure investor backing.
