Genco Shipping & Trading - board recommends shareholders not tender shares in Diana's offer

Genco Shipping & Trading Limited’s Board of Directors has once again rejected Diana Shipping Inc.’s revised unsolicited tender offer, which values Genco shares at $24.80 per share in an all-cash transaction. The board reiterated its recommendation that shareholders not tender their shares under the offer, citing concerns over fairness and alignment with long-term value creation. This marks the third time the Genco board has declined Diana’s proposal, which has been described as increasingly compelling by the acquiring firm.

Diana, which is Genco’s largest shareholder, has expressed frustration over the lack of engagement from Genco’s board, despite repeated attempts to initiate meaningful dialogue. Diana’s CEO, Semiramis Paliou, criticized the board for altering valuation methodologies in recent shareholder communications. The company has urged Genco shareholders to support its slate of six independent director nominees at the upcoming June 18 annual meeting, arguing that a new board would better serve shareholder interests.

Genco has not provided a detailed counterproposal or alternative valuation framework to justify its rejection of the offer.