The takeover battle between Diana Shipping and Genco Shipping and Trading has continued to escalate as both companies clash over share prices and asset valuations.
In a May 18 statement, Diana Shipping cautioned that Genco's share price is artificially inflated by Diana's $23.50 per share cash takeover offer and could drop to approximately $17.50 if the proposal is withdrawn.
The Athens-based dry bulk owner, which is the largest shareholder in Genco, also disclosed it has sold a portion of its holding to realise a profit while remaining committed to the acquisition.
Genco rejected the claims, describing the stock sales as potential market manipulation and asserting that its share price trajectory reflects rising industry valuations rather than Diana's proposal.
Despite Diana's assertions, the company noted that while its shares have historically traded at an average 30 per cent discount to net asset value, analyst estimates now value the assets between $26.54 and $26.80 per share.
To ensure the board reviews all value-maximising alternatives, Diana has nominated six independent directors for election at Genco's annual meeting on June 18.
Semiramis Paliou, Chief Executive Officer of Diana, asserted, "Our $23.50 per share all cash offer has brought Genco's share price to a valuation it has never sustained on its own — because it reflects the premium value of our offer."
Following reviews by financial advisers Jefferies and Morgan Stanley who deemed the terms "inadequate," Genco's board of directors has urged shareholders to reject the tender offer before it expires at 17:00 on June 2.
Additionally, the board warned that Diana may attempt to, "empty vote," shares they sold at the annual meeting.
