Lawyers challenge Genco’s Baltic acquisition

Lawyers challenge Genco’s Baltic acquisition

New York: Law firm Brodsky & Smith is investigating potential claims against the board of directors of Baltic Trading for possible breaches of fiduciary duty and other violations of state law in connection with the sale of the company to Genco Shipping & Trading.

Under the terms of the transaction, Baltic shareholders will receive only 0.216 of a share of Genco common stock for each share of Baltic stock they own. The investigation concerns whether the board of Baltic breached their fiduciary duties to shareholders by failing to adequately shop the company before agreeing to enter into this transaction, and whether Genco is underpaying for Baltic. The transaction may both undervalue Baltic and would result in a loss for many Baltic shareholders, the law firm said in a release.

The merger via a share swap was announced on Wednesday by Greek shipping entrepreneur Peter Georgiopoulos, who is chairman of both boards of directors. The merged entity would have a combined fleet of 70 dry bulk ships with a 5.16m dwt carrying capacity.

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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