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.
