Genco Shipping & Trading is extending for another year its defense against hostile takeovers, despite the withdrawal of Diana Shipping, owned by Semiramis Paliou, from the effort to acquire it.
The American shipping company is keeping in force the so-called “poison pill”, a mechanism that limits to 15% the stake that any investor can acquire through market purchases, as above that threshold a significant dilution of their holding is triggered.
The shareholder rights agreement, which was due to expire in September, is being extended until September 2027. Genco argues that the extension serves the interests of the company and its shareholders, also taking into account the recent advisory vote of shareholders.
Diana, which had come to hold 14.4% of Genco, has now reduced its stake to 5.4%, after selling an additional 2 million shares for a total of more than $51 million.
Last month Diana abandoned the takeover effort, describing Genco’s terms as “completely disconnected from reality”.