Diana Shipping moves to reshape Genco Board as takeover dispute escalates

Diana Shipping has announced plans to nominate six director candidates to the board of Genco Shipping & Trading. The move follows Genco’s rejection of Diana’s $20.60-per-share cash offer to acquire the shares it does not already own.

Diana owns about 14.8% of Genco and is its largest shareholder. The company said Genco’s board failed to engage constructively or properly assess the proposal. Diana argues that board-level change is needed to ensure a serious review of strategic alternatives and shareholder value opportunities.

The offer would give Genco shareholders an all-cash exit at a premium, supported by committed financing from two shipping banks. Diana said Genco took more than six weeks to respond and declined any dialogue on the structure or merits of the proposal.

Diana CEO Semiramis Paliou said consolidation in dry bulk shipping creates clear value. She said the company remains ready to engage but was disappointed by Genco’s refusal to do so. Diana said its nominations aim to refresh the board and enable good-faith evaluation of value-creating options.

The proposed slate brings experience across dry bulk shipping, finance, mergers and acquisitions, and corporate governance. The nominees include senior executives and board members with backgrounds in global shipping, energy finance, maritime regulation, and legal affairs.

Genco’s response

Genco responded by defending its board and governance standards. The company said its directors followed a thorough review process with external advisors and concluded that Diana’s proposal significantly undervalued Genco and carried execution risk.

Genco said it remains focused on a long-term value strategy that delivers strong operating and financial results. The company added that it has consistently ranked in the top tier for corporate governance within the industry.

Genco also disclosed that, during its review, the board identified greater value in an alternative transaction. It said an acquisition of Diana by Genco, using a mix of cash and equity, could benefit both shareholder groups. Genco said Diana declined to engage on that option.

The company said its nominating and governance committee will review Diana’s proposed directors under standard procedures. Genco will present its formal recommendation in its proxy statement ahead of the 2026 annual meeting.

Genco shareholders are not required to take any action at this stage.

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