Diana Shipping Inc. (NYSE: DSX) responded to Genco Shipping & Trading Limited's (NYSE: GNK) rejection of its $24.80 per share all-cash tender offer, marking the third rejection of Diana's acquisition proposals.

Diana, which holds a 14.4% stake in Genco with 6,264,548 shares, criticized Genco's board for refusing to engage in negotiations. The company's CEO Semiramis Paliou stated that Genco's board has demonstrated no intention of participating in constructive dialogue regarding the proposal over the past six months.

Diana highlighted Genco's shift from using VesselsValue broker valuations, which the company had relied on for five years, to sell-side analyst estimates. According to Diana, its recent offers reflected nearly 100% of Genco's net asset value based on the previously used VesselsValue metrics.

The shipping company noted that Genco has spent nearly $2 million on additional inadequacy opinions from Jefferies and Morgan Stanley, bringing total defensive spending to over $13 million. Diana also pointed to Genco's revision of its poison pill as evidence of the plan's initial aggressiveness.

Diana is pursuing both a proxy contest and tender offer. The company seeks to elect six independent directors to Genco's board at the June 18 annual meeting and urges shareholders to vote using the gold universal proxy card. The tender offer expires at 5:00 p.m. New York time on June 26, unless extended.

Diana originally commenced the tender offer at $23.50 per share on May 4 and increased the price to $24.80 per share on May 27. The offer is conditional on several factors including Genco entering into a definitive merger agreement and the termination of Genco's shareholder rights plan.

If successful, Diana plans to complete a second-step merger where remaining shareholders would receive the same $24.80 per share in cash.