US-listed dry bulk owner Genco Shipping & Trading has rejected a revised takeover proposal from Greece’s Diana Shipping, saying the offer undervalues the company and carries significant execution risks.

Genco’s board, acting on advice from a special committee of independent directors, turned down the $23.50-per-share all-cash proposal, which targets shares not already held by Diana. The company said the bid fails to provide an adequate premium and does not reflect its underlying value.

The rejection comes days after Diana raised its offer from $20.60 per share and lined up financing for the deal, bringing in fellow bulker giant Star Bulk Carriers as a partner to support the transaction.

Diana, which already owns about 14.8% of Genco, had positioned the revised offer as a 31% premium to the undisturbed share price. But Genco said the benchmark was outdated and did not capture improvements in its earnings and asset values.

The board also pointed to concerns over valuation methodology, saying Diana selectively used the lowest analyst net asset value (NAV) estimate rather than the broader average, which it said sits above the offer level.

A key sticking point is the proposed sale of 16 vessels to Star Bulk as part of the deal structure. Genco said the agreed prices implied a “fire sale”, with some ships valued well below broker estimates, including newer and larger units.

The company also flagged execution risk around financing. While Diana said it had secured $1.433bn in committed funding, Genco noted publicly disclosed commitments appeared to total closer to $1.1bn.

Diana’s proposal outlines an en bloc sale of vessels including one newcastlemax, six capesizes, seven ultramaxes and two supramaxes to Star Bulk for about $470.5m, a move Genco argues would strip value from shareholders.

Despite the rejection, Genco said it remains open to discussions on a proposal that properly reflects its asset base, earnings profile and exposure to a strengthening dry bulk market. The latest exchange marks a further escalation in the takeover battle between the two owners, with Genco also noting it had previously suggested a reverse transaction where it would acquire Diana, an approach that was not pursued.