Diana extends its tender offer in Genco takeover push
The Athens-based owner keeps its bid alive after only a modest rise in support
Diana Shipping has extended its tender offer for Genco Shipping & Trading to late July, keeping its takeover push alive after securing only a modest increase in shareholder support. The Athens-based bulker owner said 11.08m Genco shares had been tendered by the latest deadline, representing 29.7% of the outstanding stock it does not already own, up from 28.4% at the previous count. Diana already owns more than 14% of Genco and is the New York-listed company's largest shareholder, but the figures leave it short of the support needed to secure control through the tender.
The formal tender remains an all-cash offer of $24.80 a share. Diana has separately made a non-binding proposal directly to Genco's board worth an implied $27.34 a share, comprising the cash amount plus one Diana share valued at $2.54. Genco has stressed that the stock component is not part of the tender offer and urged shareholders not to tender, with its board having previously rejected the cash bid as undervaluing the company and lacking an adequate control premium.
The takeover battle has run for months, with Diana repeatedly raising its bid and taking its case directly to shareholders after failing to win over the board, which was decisively re-elected at Genco's annual meeting. Diana says its offer is backed by $1.412bn of committed financing from six international banks and carries no financing condition, and it has lined up a compatriot owner to acquire 16 Genco vessels for $470.5m should the takeover succeed.
