Genco rejects Diana Shipping takeover bid again, calls Star Bulk deal a "fire sale"

Genco Shipping and Trading has unanimously rejected a revised, non-binding proposal from Diana Shipping to acquire all outstanding shares for $23.50 per share in cash. The board of directors determined the offer substantially undervalues the company and fails to provide an appropriate premium to shareholders.

A special committee of independent directors reviewed the bid with financial and legal advisors before recommending the rejection. Genco stated the proposal presents execution risks and fails to recognise its intrinsic value in a strengthening drybulk market.

The company noted that Diana Shipping selectively used the lowest published net asset value estimate of $24 per share rather than the mean analyst estimate of $25 per share.

In a letter to Diana Shipping, Genco said the offer lacks an appropriate premium to its net asset value.