Diana Shipping has escalated its pursuit of Genco Shipping & Trading, announcing plans to launch a proxy fight after its revised merger proposal was rejected for a second time. The company said it will move forward with efforts to elect a new slate of independent directors to Genco’s board, taking the dispute directly to shareholders.
Diana argues that the merger would create a stronger dry bulk platform at the start of what it sees as a favorable market cycle.
The latest offer included an increased price per share and fully committed financing. Diana also revealed plans to sell 16 of Genco’s vessels to Star Bulk following a successful combination, positioning the move as part of a broader value creation strategy.
Genco’s board, however, has firmly rejected the proposal, stating it undervalues the company and fails to provide an adequate control premium. The board maintains that the offer does not reflect Genco’s intrinsic value or net asset value and is not in the best interests of its shareholders.
The dispute has been building since last year, when Diana began acquiring shares in Genco and eventually disclosed a nearly 15 percent stake. Despite raising its bid in March, Diana claims Genco has refused to engage in meaningful discussions.
Tensions have intensified as both sides publicly challenge each other’s positions. Diana accuses Genco’s leadership of entrenchment and failing to act in shareholders’ best interests, while Genco has questioned the credibility of Diana’s financing and criticized the planned vessel sales as a “fire sale.”
With both parties standing firm, the battle is now shifting toward a shareholder vote, setting the stage for a high-profile proxy contest in the dry bulk shipping sector.
