The takeover tussle between dry bulk players Diana Shipping and Genco Shipping & Trading is escalating, with the Greek owner hitting back after its sweetened bid was rejected for a second time.

Diana, which already holds close to 15% of Genco, said the US-listed bulker owner had dismissed its $23.50-per-share all-cash offer without meaningful engagement, despite the proposal being fully financed and backed by partner Star Bulk.

The latest exchange follows Genco’s second rejection of the approach, as reported by Splash earlier this month, where the board made clear it did not see the offer as reflecting the company’s underlying value.

Chief executive Semiramis Paliou accused Genco’s board of focusing on “entrenching themselves” rather than engaging on what she described as a premium offer aligned with the company’s own net asset value.

The Athens-based owner also pushed back on Genco’s concerns around financing, saying the structure had been mischaracterised. According to Diana, $1.102bn in committed acquisition debt alone is enough to complete the deal, with additional financing unrelated to the transaction itself.

The involvement of Star Bulk — and a plan to sell on some vessels — has also become a sticking point, but Diana insisted this has no bearing on Genco shareholders or the certainty of closing.

Genco, for its part, is holding its ground. The company reiterated that the proposal falls short of its intrinsic value and does not offer an adequate control premium, while leaving the door open to talks should a revised offer better reflect its upside.

With neither side backing down, the Diana-Genco standoff is now moving towards a boardroom battle and Diana said it will press ahead with a proxy campaign to install independent directors at Genco – a move initially revealed in January this year.

“We, therefore, have no choice but to proceed with our effort to elect to the Genco board independent directors who will act in the best interest of all shareholders by exploring all meaningful opportunities for value creation,” Paliou said.