The takeover battle between dry bulk players Genco Shipping & Trading and Diana Shipping is stepping up, with the US-based owner urging shareholders to ignore its rival’s advances and back the current board.

In a fresh letter to investors, New York-listed Genco doubled down on its rejection of Diana’s $23.50-per-share offer, calling it inadequate and warning that the parallel proxy fight risks handing control of the company on the cheap.

The latest move follows weeks of back-and-forth between the two owners, with Diana pushing to replace Genco’s entire board after its takeover approach was knocked back earlier this month.

Genco said the offer fails to reflect the company’s underlying value and does not provide a proper premium for control. The board added it remains open to talks — but only if Diana comes back with improved terms.

Meanwhile, the company is drawing a clear line on the proxy contest, framing it as a vote on control rather than on the takeover itself.

“If Diana’s nominees gain control, they could push through a deal at a lower price or take actions that don’t favour existing shareholders,” Genco said.

The company is leaning heavily on its recent track record to make its case. Genco pointed to total shareholder returns of 213% over the past five years — well ahead of both the broader market and Diana — alongside steady dividends and a strengthened balance sheet.

Genco has been running a low-leverage, high-dividend model since 2021, paying out $292m to shareholders while also investing close to $500m in fleet renewal to boost earnings capacity.

The owner said it expects to keep delivering higher dividends into 2026, even during seasonally weaker periods, supported by firm fixtures and what it described as constructive dry bulk market fundamentals.

Diana, however, has taken a more aggressive route, launching a proxy challenge aimed at reshaping Genco’s board and strategy. As previously reported, the Greek owner has been pushing for a combination of the two companies, arguing it would create scale and unlock value.

Genco has been pushing back hard on that narrative, highlighting differences in governance and performance, and warning that a change in control could undermine its current strategy — including its dividend model.

For now, shareholders are being told to sit tight, with Genco saying no action is required ahead of its upcoming annual meeting, where the fight is expected to come to a head.