Star Bulk chief executive Petros Pappas has criticised US-listed dry bulk owner Genco Shipping and Trading for its handling of a takeover approach from fellow Greek owner Diana Shipping.
Star Bulk has a stake in the process, having agreed to acquire 16 Genco vessels from Diana, subject to the successful completion of Diana’s proposed acquisition of Genco.
Notably, Diana recently renewed its takeover effort with a third revised offer after two previous bids were rejected. The latest proposal remains under review.
“Diana is facing a board that has become entrenched. They do not own shares in Genco and they refuse to engage in discussions,” Mr Pappas told the Capital Link Maritime Leaders Summit held during Posidonia week.
Mr Pappas also revealed that Star Bulk made an offer for Genco last summer involving a combination of shares and cash.
“Within 24 hours they rejected us. They totally blew us off,” he said, adding that the decision was based on advice from the company’s lawyers.
“It is no surprise that they are acting this way now,” the Greek shipowner added.
“If I were a Genco shareholder, I would accept the offer with a backflip,” Mr Pappas continued.
He argued that if the offer is ultimately rejected, Genco’s share price, which is currently trading close to net asset value (NAV), could fall by 20% to 30%.
That is a claim also made by Diana Shipping. The company has argued that Genco’s current share price has been artificially supported by the takeover proposal and warned that, without the bid, the stock could return to the persistent discount to NAV at which it has historically traded
While Genco has said it will review the latest proposal, the company has maintained that its board believes pursuing its standalone strategy will deliver substantially greater value to shareholders than Diana’s offer.
Source: Riviera