A major takeover battle is unfolding between Diana Shipping and Genco Shipping & Trading. Both companies are actively campaigning for shareholder support.
The conflict escalated after Genco’s board unanimously rejected Diana Shipping’s unsolicited tender offer of $23.50 per share in cash. Diana is currently Genco’s largest shareholder. Genco said the offer remains unchanged from a proposal submitted in March 2026 and previously rejected.
Genco argued that the bid significantly undervalues its fleet and does not include a proper control premium. The company said independent financial opinions from Jefferies and Morgan Stanley found the offer financially inadequate for shareholders.
The company also pointed to analyst net asset value estimates. These estimates range from an average of $26.54 per share to a median of $26.80 per share. Both figures exceed Diana’s offer price.
John Wobensmith defended Genco’s strategy in a direct letter to investors. He said the company’s value strategy, launched in 2021, has returned about $310 million, or $7.16 per share, in cumulative dividends.
Wobensmith urged shareholders to protect their investment and resist what Genco described as an attempted takeover by a competitor.
Diana Shipping responded with its own public campaign. The company claimed Genco’s management is risking shareholder value. Diana argued that Genco’s current stock price is supported by the tender offer and could fall toward $17.50 per share if the bid disappears. Diana said this reflects the historical 30% discount to net asset value at which Genco has traded since 2020.
Diana also disclosed that it sold part of its Genco stake to lock in profits. The company said proceeds from those sales, together with $1.443 billion in fully committed financing, would fund the acquisition if an agreement is reached.
“Our $23.50 per share all-cash offer has brought Genco’s share price to a valuation it has never sustained on its own,” Diana stated.
Diana also urged shareholders to support its six independent director nominees using a gold universal proxy card during Genco’s 2026 annual meeting.
Genco quickly criticized Diana’s stock sales. The company described the move as market gamesmanship. Genco questioned Diana’s commitment to creating long-term value.
Genco also accused Diana of attempting to drive down the stock price while simultaneously profiting from share sales. The company warned that Diana could attempt “empty voting” at the annual meeting by retaining voting rights tied to shares sold after the record date.
Amid the takeover fight, Diana Shipping also announced a commercial update. The company extended the time charter contract for its post-panamax vessel m/v Polymnia with Oldendorff Carriers. The charter rate is $20,000 per day, minus a 5% commission. The contract runs until at least March 1, 2027, and up to April 30, 2027.
Diana expects the charter extension to generate about $5.36 million in gross revenue during the minimum charter period.
The proxy battle and tender offer are now approaching key deadlines. Genco shareholders must decide between the company’s standalone dividend strategy and Diana Shipping’s fully financed cash offer.
