Diana Shipping (NYSE:DSX) escalated its hostile takeover bid for Genco Shipping & Trading (NYSE:GNK) on Monday, sending a letter to shareholders to nominate six independent director candidates.
The move follows what Diana characterizes as a "deliberate pattern of entrenchment" by Genco’s leadership to block a fully financed, all-cash acquisition offer of $23.50 per share.
Diana, which currently owns approximately 14.8% of Genco’s outstanding common stock, is seeking to replace a majority of the Genco Board at the upcoming 2026 Annual Meeting.
The nominees—Gustave Brun-Lie, Paul Cornell, Chao Sih Hing Francois, Jens Ismar, Viktoria Poziopoulou, and Quentin Soanes—are being positioned as independent voices who will prioritize shareholder value and engage in meaningful merger discussions.
In the letter, Diana’s leadership criticized Genco’s board for implementing several defensive measures, including the unilateral adoption of a "poison pill" shareholder rights plan.
Diana also alleged the secretive formation of a Special Committee and an undisclosed Employee Retention Plan, which it claims are designed to protect management roles and compensation packages at the expense of investor returns.
The $23.50 per share offer represents a significant premium to Genco’s historical trading levels, though Genco’s board has previously dismissed the proposal as factually unfounded.