Genco Rejects Diana Shipping Bid and Counters with Own Acquisition Proposal
New York, Wednesday, 14 January 2026.
On January 13, 2026, Genco Shipping & Trading unanimously rejected an unsolicited $20.60 per share takeover proposal from Diana Shipping, asserting the bid undervalues the company and lacks financial certainty. In a bold strategic turn, Genco’s Board countered by proposing to acquire Diana Shipping instead. Genco argues its stronger balance sheet—evidenced by a lower daily cash flow breakeven of $10,000 compared to Diana’s $16,000—positions it as the superior acquirer. While Diana holds a 14.8% stake in Genco and claims financing support, Genco contends a reverse combination would better serve shareholders by creating a market-leading fleet of 83 drybulk vessels under more efficient management.
Diverging Valuations and Financing Disputes
The Board’s unanimous decision, confirmed on January 13, 2026, highlights a fundamental disagreement regarding valuation and corporate governance [1][6]. Genco’s directors determined that Diana’s offer of $20.60 per share in cash materially undervalues the company, noting that the price falls well below Genco’s 10-year trading high of $26.93 [1]. Beyond the price tag, Genco cited significant execution risks, specifically pointing to Diana’s high leverage profile and an alleged lack of committed financing [1]. However, this claim is contested; reports indicate that Diana’s proposal is supported by a financing commitment from DNB Bank and Nordea Bank for up to $1.1 billion [5][7]. Despite this, Genco’s leadership concluded that the proposal lacked the necessary structure and certainty to warrant further engagement [1].
Operational Disparities and Financial Health
In support of its counter-proposal to acquire Diana, Genco emphasized its superior operational efficiency and financial health. Genco operates with a cash flow breakeven rate of approximately $10,000 per vessel per day, which is significantly lower than Diana’s approximate breakeven of $16,000 per day [1][6]. This efficiency gap of 6000 dollars per day suggests Genco is better equipped to manage market volatility. Furthermore, Genco highlighted its robust capital structure, boasting a net loan-to-value (LTV) ratio of approximately 20% and recent investments totaling $347 million in high-specification vessels [1][6]. In contrast, financial data indicates Diana Shipping carries a debt-to-equity ratio of 1.3 and an Altman Z-Score of 0.83, a metric that signals potential financial distress [7].
Strategic Standoff and Market Position
The friction between the two shippers is exacerbated by their existing relationship and market standing. Diana Shipping currently owns approximately 14.8% of Genco’s outstanding shares and expressed deep disappointment at the rejection, with CEO Semiramis Paliou criticizing Genco’s refusal to engage in discussions [2][5]. Diana argued its offer represented a 23% premium to Genco’s volume-weighted average price for the period ending November 21, 2025 [5]. However, Genco believes a combination under its own leadership would be more advantageous, creating a top-15 global owner with 83 drybulk vessels [6]. Genco also pointed to its superior liquidity as a key advantage for a combined entity, noting its average daily trading volume is approximately $9 million compared to Diana’s $1 million—a ratio of 9 to one [6]. As of January 14, 2026, Genco has stated it will not pursue Diana’s current proposal but remains open to discussing its own acquisition terms [1][6].