Controversial Genco and Baltic merger completed

Controversial Genco and Baltic merger completed

New York: Peter Georgiopoulos has won his way with shareholders, pushing through a controversial merger between his two dry bulk companies, Baltic Trading and Genco Shipping & Trading. The merger, first mooted in April, has seen Baltic’s stock delisted and it shuffled into its new parent, Genco.

Genco has acquire NYSE-listed Baltic in a stock-for-stock transaction. The combined company is owned 84.5% by Genco and 15.5% by Baltic Trading shareholders.

A handful of law firms took issue with the takeover plan challenging the fairness of it. The firms said the board of Baltic Trading has breached its fiduciary duties to stockholders by failing to adequately shop the company before agreeing to enter into the transaction, and they questioned whether Genco is underpaying for the Baltic shares.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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