Diana Shipping Plans Proxy Fight After Genco Rejects Offer

Diana Shipping Initiates Board Challenge at Genco

Diana Shipping Inc., a global shipping firm holding nearly 15% of Genco Shipping & Trading, is preparing to launch a proxy fight. The company intends to nominate six new directors to Genco's board after its recent takeover offer of $20.60 per share was rejected.

Overview of the Takeover Dispute

The conflict escalated after Genco's board declined Diana's acquisition proposal, which represented a 15% premium over Genco's closing price on November 21. Diana expressed disappointment with the six-week delay in Genco's response and aims to install a board that is more open to exploring strategic alternatives for shareholders.

Impact on Genco's Market Position

Genco Shipping's stock has demonstrated strong performance, closing at $19.88 and climbing 36% over the last 12 months. The proposed board changes by Diana Shipping seek to unlock further value through consolidation within the dry bulk carrier sector, a move that could significantly influence Genco's stock and market strategy.

Summary and Future Outlook

Diana Shipping's action signals a push for significant change at Genco. The upcoming proxy battle will allow shareholders to decide on the company's future direction, with a focus on either maintaining the current strategy or pursuing a merger that could create a larger, more consolidated entity in the shipping industry.

FAQ

Q: Why is Diana Shipping starting a proxy fight?
A: Diana Shipping is launching a proxy fight because Genco's board of directors rejected its cash takeover offer, and Diana aims to install a new board that will reconsider the proposal and other strategic options.

Q: What was Diana Shipping's offer for Genco?
A: Diana offered to purchase all outstanding Genco shares for $20.60 per share in cash.

Source: Reuters via Investing.com