US Markets
Home›US Markets›M&A & Deals›Diana Shipping withdraws takeover bid for Genco Shippi…
Diana Shipping withdraws takeover bid for Genco Shipping after year-long fight
Diana’s final proposal would have valued Genco at about $36.91 per share, a 42% premium, before the bid was pulled.
Diana Shipping Inc. has withdrawn its nearly year-long takeover bid for rival Genco Shipping & Trading Limited after Genco demanded terms Diana said no credible acquirer could meet, ending one of the shipping sector’s longest-running acquisition stand offs, according to Yahoo Finance.
Diana said its final offer would have valued Genco at around $36.91 a share based on Diana’s August 13 closing price, implying a 42% premium to Genco’s closing price that day. Diana said its counter to Genco’s requests included 27.50 per share in cash, plus 2.00 to account for upcoming dividends, and three Diana shares per Genco share, which it called convoluted.
Despite withdrawing, Diana said it remains Genco’s largest shareholder and will keep pressure on the board. Diana shares rose 3.2% on the news, while Genco shares fell 0.7%.
Yahoo Finance also noted that Genco’s board held its valuation through a tender offer and a proxy fight, with shareholders voting against Diana’s remaining board nominees in June. The end of the process leaves Genco to defend its stand-alone valuation without the takeover premium that had supported investor interest.