Genco Board Rejects Diana Shipping's $24.80/Share Buyout, Citing Undervaluation
Summary
Genco Shipping & Trading's board unanimously rejected Diana Shipping's latest unsolicited buyout offer of $24.80 per share. The board stated the offer "meaningfully undervalues" the company, is below its net asset value, and does not include a control premium. This is the latest development in a months-long hostile takeover attempt by Diana Shipping, which has included multiple rejected offers and an ongoing proxy fight. Genco maintains it is willing to engage if Diana submits an offer that adequately compensates shareholders. The rejection reinforces Genco's firm stance against Diana's attempts to acquire the company at what it deems an insufficient price.
At the time of this announcement, GNK was trading at $24.17 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $1.1B. The 52-week trading range was $12.66 to $27.25. This news item was assessed with neutral market sentiment and an importance score of 9 out of 10. Source: Dow Jones Newswires.