Greek dry bulk owner Diana Shipping has warned that shares in rival Genco Shipping & Trading could fall to around $17.50 if its $23.50-per-share takeover proposal is removed from the table.

Athens-based Diana, currently Genco’s largest shareholder, said the US-listed bulker owner’s stock price is being artificially supported by its all-cash offer and does not reflect the company’s historic trading levels.

According to Diana, Genco’s net asset value stood at roughly $25.40 per share at the end of March based on VesselsValue estimates, excluding what it described as at least $0.80 per share in additional change-of-control costs.

Diana argued that Genco has historically traded at an average 30% discount to NAV since 2020 and claimed that without the takeover offer the stock could return to those levels, implying a share price closer to $17.50.

The latest salvo marks another escalation in the increasingly hostile battle between the two dry bulk players, with Diana openly accusing Genco’s board and management of risking shareholder value by resisting the proposal.

Diana chief executive Semiramis Paliou said the current share price reflected the premium value of Diana’s bid rather than Genco’s standalone performance.

“Our $23.50 per share all-cash offer has brought Genco’s share price to a valuation it has never sustained on its own,” Paliou said.

Diana also disclosed that it has sold part of its Genco shareholding while maintaining what it described as a significant ownership stake in the company.

The owner said proceeds from the share sales, together with $1.443bn in fully committed financing, would help fund a full acquisition of Genco should a deal eventually be reached.

Diana insisted the partial sell-down did not weaken its commitment to the transaction, arguing instead that it strengthened its ability to complete the acquisition efficiently.

At the centre of the dispute is Diana’s campaign to replace six members of Genco’s board at the upcoming annual meeting scheduled for June 18.

The company is urging shareholders to vote for its six independent director nominees — Gustave Brun-Lie, Paul Cornell, Chao Sih Hing Francois, Jens Ismar, Viktoria Poziopoulou and Quentin Soanes — while also tendering shares into the standing $23.50-per-share cash offer.

The tender offer is currently due to expire on June 2 unless extended.The latest statement follows another rejection by Genco’s board last week, when the New York-listed owner dismissed Diana’s revised proposal for a second time, arguing the offer significantly undervalued the company and its long-term prospects.

Earlier on Monday, Genco chairman and chief executive John Wobensmith also issued a fresh letter to shareholders defending the company’s strategy and accusing Diana of pursuing a self-interested campaign aimed at gaining control without paying adequate value.