Genco Shipping & Trading has rejected Greek rival Diana Shipping's hostile takeover bid for the second time. The New York-listed bulker owner's board dismissed the $23.50-per-share tender offer, stating it "meaningfully undervalues" the company's assets and business, and urged shareholders not to tender their shares to Diana.
Diana Shipping's initial proposal emerged in March and was turned down by Genco's board. Diana revived the approach earlier this month through a hostile tender offer directed straight at shareholders. In a filing with the US Securities and Exchange Commission (SEC), Genco said the offer fails to provide shareholders with an appropriate control premium.
Genco's board emphasized that Diana's offer price remained unchanged despite rising dry bulk asset values and stronger market conditions. The company pointed to analyst estimates placing its net asset value between roughly $26.50 and $26.80 per share, well above Diana's bid. Genco argued that its standalone strategy would create more value for investors than accepting the offer.
Financial advisers Jefferies and Morgan Stanley both concluded the offer was inadequate from a financial standpoint to Genco shareholders. Genco has defended what it calls its "comprehensive value strategy", highlighting shareholder returns, dividends, disciplined capital allocation, and exposure to a potentially strengthening dry bulk market.
Diana Shipping, led by Semiramis Paliou, has steadily increased pressure on Genco in recent months, arguing that changes to governance and strategy are needed to unlock shareholder value and improve market positioning. Genco, meanwhile, has doubled down on defending its current management and board while campaigning for shareholder backing ahead of the upcoming annual meeting on June 18. The takeover battle has become one of the shipping industry's most closely watched corporate contests this year.
Key Takeaways:
1. Genco Shipping & Trading rejected Diana Shipping's $23.50-per-share hostile bid for the second time.
2. Genco's board stated the offer undervalues the company's net asset value of $26.50-$26.80 per share.
3. Jefferies and Morgan Stanley deemed Diana's offer financially inadequate for Genco shareholders.
4. Diana Shipping has intensified pressure on Genco, demanding governance and strategy changes.
5. The takeover battle intensifies ahead of Genco's June 18 annual shareholder meeting.
