Battle of Bulkers Continues as Daina Increases Offer for Genco
The battle between two leading dry bulk operators heated up as Diana Shipping looked to further increase the pressure on Genco Shipping & Trading to come to terms for a merger. The two companies have been accusing each other of misrepresentations as the battle has stretched on, as Diana seeks to acquire Genco.
Both companies agree it is a good time in the sector and cite the opportunities that are ahead. Many have cited the strength of combining two similar-sized fleets to create a large player in the sector, but the two companies appear to remain far apart from reaching terms for a merger.
“Our previous offers have each been met with silence, and we are hopeful that the Genco board will finally sit down with us to engage in a constructive dialogue,” said Semiramis Paliou, Diana's Chief Executive Officer.
It went public with its interest in merging the companies in November 2025, but was rejected by Genco’s board, which consistently said Diana is undervaluing the fleet. At the beginning, it questioned the company’s ability to complete a cash offer of this magnitude and asserted that Genco had the stronger balance sheet.
Diana today (May 27) raised its offer to $24.80 per share as part of its ongoing tender offer for the outstanding shares of Genco. Diana purchased about 18 percent of Genco’s shares in private market transactions before launching its takeover proposals. It had first offered $20.60 per share and later raised it to $23.50, citing agreed financing and a deal to sell some of Genco’s ships to Star Bulk concurrently with the closing of the merger.
Diana asserts that it is now offering a 39 percent premium to the share price prior to the announcement of the offer in November 2025. It further states it is a 48 percent premium to the 30-day average for the share price before the announcement of the merger proposal.
One of the points of contention has been the valuation of the fleet. Diana now asserts it is offering approximately one times net asset value (NAV). It contends the sector traditionally trades at approximately a 20 percent discount to NAV while asserting Genco was trading at a 30 percent discount.
Increasing the cash offer is the latest in a series of steps Diana has underway in a push to close the deal. It has already launched a tender offer for the shares and has put forward opposition nominees for six new individuals to reconstitute the Genco board of directors. It has now extended the increased value tender offer until June 26.
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Genco responded with a standard statement saying its board and financial advisors would review the newly received offer. It has consistently told shareholders to reject the offers and cites what it sees as misrepresentations from Diana.
Shareholders will have their say in the battle, with the annual meeting scheduled for June 18.