In a strong vote of confidence for Genco’s leadership, shareholders at the U.S. dry bulk shipping company’s annual general meeting overwhelmingly rejected Diana Shipping’s attempt to gain greater influence over the board of directors.

Genco announced that all six incumbent directors standing for re-election secured approximately 90% of shareholder votes, excluding the shares controlled by Diana Shipping. Investors also rejected Diana’s two board nominees, Jens Insmar and Paul Cornell, reaffirming their support for the company’s current leadership.

A key outcome of the meeting was shareholder approval of Genco’s shareholder rights plan, commonly known as a “poison pill.” The measure prevents Diana Shipping from increasing its ownership stake above 15% without board approval.

Genco said the results reflected investors’ confidence in the strategy it has pursued in recent years. According to the company, investments in fleet renewal, debt reduction, lower operating costs, and enhanced dividend-paying capacity have already begun delivering value to shareholders.

The outcome also represents a significant personal victory for John Wobensmith, Genco’s Chairman and Chief Executive Officer, who has been at the center of the months-long takeover dispute with Diana Shipping.

Diana Shipping Not Backing Down

Despite the setback, Diana Shipping made it clear that it has no intention of abandoning its effort to acquire its larger competitor in the dry bulk shipping sector.

Just hours before the shareholder meeting, the Greek shipping company submitted its fourth—and highest—takeover proposal, valuing Genco at $27.34 per share.

The revised offer adds one additional Diana Shipping share compared with its previous proposal, which valued Genco at $24.80 per share.

Genco’s board is currently reviewing the proposal with the assistance of financial and legal advisers.

Paliou: “We Remain Committed to the Acquisition”

Diana Shipping Chief Executive Officer Semiramis Paliou said the shareholder vote would not alter the company’s strategy.

She noted that Diana has spent more than six months trying to convince Genco shareholders that its proposal would deliver significant and immediate value, while accusing Genco’s management of repeatedly rejecting its offers without engaging in meaningful discussions or presenting a counterproposal.

Paliou added that, as Genco’s largest shareholder, Diana Shipping will continue working to maximize value for all shareholders and urged investors to maintain pressure on Genco’s board to seriously consider the acquisition proposal.

$1.43 Billion Financing Secured

Diana Shipping says its latest proposal represents a 53% premium over Genco’s share price before takeover discussions began and exceeds the company’s net asset value (NAV) by approximately 6%.

The company also stated that the financing package is fully secured, backed by $1.433 billion in committed funding from six major international banks.

Battle Far From Over

While the shareholder vote in New York marked a decisive victory for Genco’s current management, the takeover battle is far from over.

With an improved acquisition offer now on the table and Diana Shipping maintaining a significant ownership stake, the contest between the two dry bulk shipping companies is expected to continue in the coming months. Attention will now focus on whether Genco’s board is willing to give Diana’s latest proposal serious consideration.