Diana Shipping threatens to cut Genco takeover price
The Athens-based owner cites a $50 million drop in its US rival's fleet value since early June to justify a potentially lower offer.
Diana Shipping has raised the prospect of cutting its $27.34-per-share takeover proposal for Genco Shipping & Trading, arguing that the US-listed owner's fleet has lost $50 million in value since early June. The Athens-based company's move adds a new pressure point to its prolonged pursuit of its American dry bulk rival.
Diana pointed to third-party fleet valuation data placing Genco's 43-ship fleet at $1.433 billion as of July 28, down 3.4% from a peak reached earlier in June. By tying the potential price cut directly to an independent valuation benchmark, Diana is framing the move as a rational response to changed market conditions rather than a negotiating tactic alone.
The threat to lower the offer follows Diana's earlier decision to let its hostile tender offer for Genco expire without extension, while keeping its separate acquisition proposal formally on the table. Linking that standing proposal to a falling asset valuation gives Diana a fresh argument for revisiting its terms without abandoning its broader ambition to acquire the company.
Genco has not signalled how it would respond to a reduced offer, and the dry bulk owner has previously pushed back publicly on Diana's approach. Any downward revision to the proposed price would likely deepen the standoff between the two companies, particularly if Genco's board views the valuation argument as opportunistic rather than reflective of the fleet's underlying long-term worth.
With fleet values fluctuating and the takeover proposal still open, the coming weeks are likely to reveal whether Diana follows through on the threatened price cut and how Genco chooses to respond. The dispute remains one of the more closely watched contests in the US-listed dry bulk sector.
