Diana Shipping Cuts Genco Stake Below 10% Weeks After Abandoning Takeover Bid

Diana Shipping has begun selling down its stake in Genco Shipping & Trading, dropping below the 10% ownership threshold just weeks after abandoning its contentious effort to acquire the U.S.-listed dry bulk shipowner.

SEC filings show Diana sold a combined 285,707 Genco shares between August 27 and September 2, reducing its position to approximately 4.13 million shares.

Diana sold 285,707 Genco shares between August 27 and September 2 for roughly $7.5 million, reducing its stake to about 4.13 million shares.

More importantly, the sales pushed Diana below the 10% ownership threshold. In its latest Form 4, Diana said it is “no longer a 10% beneficial owner” and characterized the disclosure as an “exit filing.” 

The move represents a notable change in posture following a bitter, months-long takeover and proxy battle between two of the dry bulk sector’s best-known companies.

Diana withdrew its takeover proposal on August 14 after the two sides failed to agree on valuation. Its final offer was $24.80 in cash plus one Diana share, while Genco sought a package Diana valued at roughly $36.91 per share.

Diana called the demands unrealistic and withdrew its offer, accusing Genco’s board of protecting management rather than maximizing shareholder value.

At the time, however, Diana made clear that withdrawing the bid did not mean it was walking away from Genco.

“I want to be clear: we are not going away,” Diana CEO Semiramis Paliou said. She said Diana would remain Genco’s largest shareholder, closely monitor its performance and hold the board and management accountable for commitments on standalone value, dividends and its Comprehensive Value Strategy. 

The dispute had already spilled into a proxy fight earlier this year. Genco shareholders handed management a decisive victory at the company’s June annual meeting, with nearly 90% of shares voted excluding Diana’s holdings supporting each of Genco’s six director nominees. Shareholders also backed Genco’s equity incentive plan and shareholder rights agreement while rejecting Diana’s proposals. 

Diana’s latest sales suggest it is now at least partially unwinding the position it built during the takeover fight. But with more than 4.1 million Genco shares still in its hands following the reported transactions, Diana remains a significant shareholder.

Whether it intends to hold that position or continue selling is less clear — and with Diana now below the 10% threshold, its next move may not be as easy to track.

Subscribe for Daily Maritime Insights

Sign up for gCaptain’s newsletter and never miss an update

— trusted by our 107,314 members