Genco Rejects Star Bulk-Backed Diana Shipping Bid

Genco Shipping & Trading has rejected a takeover bid from Star Bulk Carriers for fellow dry bulk owner Diana Shipping, the company announced this week. According to Genco, the proposed all-stock transaction 'significantly undervalues' Diana Shipping and does not offer an appropriate premium for control of the company. Genco also claimed that the vessel purchases Star Bulk has lined up to support the deal were made at 'fire sale' prices. 'The Genco Board of Directors has unanimously determined that the proposed transaction is not in the best interests of Genco's shareholders,' the company said in a statement. 'Genco believes the proposed transaction significantly undervalues Diana Shipping and does not provide Genco shareholders with an appropriate premium for change of control.' The bid from Star Bulk, which already owns around 9.8% of Diana Shipping, was first reported by shipping news outlet gCaptain last month. Star Bulk had proposed a share-for-share exchange that would have seen Diana Shipping shareholders receive 3.8 shares of Star Bulk for each Diana share. In its rejection, Genco said the proposed exchange ratio 'falls well short' of an appropriate premium for control of Diana Shipping. The company also claimed that Star Bulk has secured vessel purchases to support the deal at 'fire sale' prices that do not reflect fair market value. 'Genco believes the vessel purchases Star Bulk has lined up to support the proposed transaction were made at fire sale prices that do not reflect fair market value,' the company said. The rejection comes as the global shipping industry navigates a volatile market environment, with soaring fuel costs, supply chain disruptions, and geopolitical tensions impacting freight rates and profitability across sectors. In this context, consolidation has emerged as a potential strategy for dry bulk operators to build scale and resilience.