Genco Shipping’s directors deemed the unsolicited offer too low and lacking a control premium for shareholders.
Genco Shipping & Trading Ltd’s board unanimously rejected Diana Shipping Inc’s unsolicited tender offer of $23.50 per share in cash. The board stated the bid undervalues the company and fails to include a control premium for shareholders.
Diana Shipping proposed acquiring all outstanding Genco shares at $23.50 each, without prior negotiations. Genco’s stock closed at $20.15 on Thursday, below the offer price but above its 52-week low of $14.80.
No immediate market reaction was disclosed following the announcement.