Diana Shipping Inc. (NYSE: DSX) cautioned that Genco Shipping & Trading Limited's (NYSE: GNK) share price could decline to approximately $17.50 per share if Diana's $23.50 per share cash offer is withdrawn, according to a company statement.

Diana, which holds a 14.5% stake in Genco, stated that Genco's current share price appears artificially inflated by its acquisition offer. The company noted that Genco has historically traded at an average 30% discount to net asset value since 2020.

Genco's net asset value as of March 31, 2026, was approximately $25.40 per share based on vesselsvalue.com, excluding adjustments of at least $0.80 per share for change in control costs. Diana indicated that without its offer supporting the current price level, Genco's stock could return to historical discount levels.

Diana disclosed it has sold a portion of its Genco shareholdings at current price levels, describing the move as prudent given what it considers inflated valuations. The company stated the funds would be used alongside $1.443 billion in committed financing to fund its proposed acquisition.

"Our $23.50 per share all cash offer has brought Genco's share price to a valuation it has never sustained on its own," said Semiramis Paliou, Diana's Chief Executive Officer.

Diana has nominated six independent directors for Genco's 2026 annual meeting and is urging shareholders to vote for its nominees. The company's tender offer expires at 5:00 p.m. New York time on June 2, 2026, with the annual meeting scheduled for June 18, 2026.

The tender offer is conditional on Genco entering a definitive merger agreement, majority shareholder approval, and termination of Genco's shareholder rights plan, among other conditions.