Genco Shipping & Trading Reassures Shareholders
Genco Shipping & Trading has moved to reassure shareholders over its controversial shareholder rights plan, pledging to limit its use and seek investor approval for any future extension.
Background
The move came hours after Diana Shipping renewed its campaign ahead of Genco’s June 18 annual meeting, urging shareholders to elect its two remaining board nominees and vote against both Genco’s shareholder rights agreement and its proposed equity incentive plan.
Genco’s board responded by outlining a series of commitments tied to the rights plan, commonly referred to as a poison pill, which was introduced last year after Diana rapidly accumulated a stake that made it the company’s largest shareholder.
Key Commitments
- Allow the rights agreement to expire no later than one year after any extension approved at the upcoming annual meeting
- Seek shareholder approval before adopting any future rights plan lasting longer than a year
- Include a qualifying offer provision in any future rights agreement, allowing shareholders to evaluate credible takeover proposals under defined circumstances
- Consider any acquisition proposal in good faith, including offers from Diana or other parties
The latest exchange marks another chapter in a takeover battle that began in late 2025 when Diana built a significant stake in Genco before launching an unsolicited cash offer.