Diana Shipping initiates a proxy fight to replace six Genco directors after its takeover bid was rejected, aiming to enhance shareholder value.
Diana Shipping announced it will launch a proxy fight to replace six directors at rival Genco Shipping and Trading after its takeover bid was rejected, reports Reuters.
The company, which owns nearly 15 percent of Genco, had offered US$20.60 per share in cash for all outstanding stock. Diana stated it will nominate executives with shipping industry experience in the coming days.
Genco indicated that its nominating and corporate governance committee will review the proposed nominees under standard procedures, emphasizing that it will act in the best interests of shareholders.
Diana expressed its desire to provide Genco shareholders the opportunity to elect new directors who are willing to consider alternatives, including its acquisition proposal. Genco rejected the offer made on November 24, which represented a 15 percent premium to its closing price on November 21.
Diana criticized Genco's six-week delay in responding and maintained that combining the two companies would benefit shareholders and consolidate the dry bulk sector. Genco countered that the bid undervalued the company after a thorough review with external advisers.
During due diligence, Genco suggested instead that it acquire Diana, asserting that this would benefit both sets of shareholders. Genco's shares fell 1.16 percent but have risen 38 percent over the past year.
