Genco Asserts Diana is Misleading Investors as it Extends Tender Offer
The battle for control of Genco Shipping & Trading continues with the two sides again trading a fresh round of barbs after Diana Shipping said it was extending its tender offer. Diana reports it has already received more than 10.5 million shares, or over 28 percent of the stock, in addition to its 14 percent position as the largest shareholder in the company.
“Diana’s commitment to acquiring the Genco shares that we do not own has not diminished,” said Semiramis Palio, Diana’s Chief Executive Officer. This comes after the company failed to win shareholder support for two new directors on Genco’s board at the annual meeting.
The company said it was extending the offer to July 10. On June 17, it announced it was raising the cash offer of $24.80 with the addition of one share of Diana. It sets the value of the offer at $27.34 based on the 30-day trading average for its shares. (The share price closed today at $2.01.)
Genco responded by saying that it was “yet more gamesmanship” and an attempt to confuse shareholders. It alleges that Diana has only extended the cash offer of $24.80 and called the statement an effort to mislead shareholders.
“With respect to the $24.80 tender offer, it is perplexing that this is still being offered, as it is even below Diana’s subsequent non-binding indicative proposal announced on June 17…. Diana has not filed an amended tender offer statement for a tender offer at an increased price,” stated Genco.
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It said its board was reviewing the proposal, but that it would not amend its recommendation statement until Diana filed the revised offer. The board reiterated that it reviewed and unanimously rejected the $24.80 tender offer, calling it undervaluing the company’s assets and did not include any control premium.
The board asserts that the company is executing a “Comprehensive Value Strategy,” which is delivering compelling and growing dividends and superior value to shareholders.