Proxy advisory firm Institutional Shareholder Services (ISS) recommended Genco Shipping & Trading (GNK) shareholders vote against the company's shareholder rights plan. The proposal seeks a three-year extension of the existing poison pill.
The recommendation follows an unsolicited all-cash tender offer from Diana Shipping Inc. (DSX). Diana Shipping is offering to acquire Genco for $24.80 per share.
ISS expressed concerns that the extension could serve as an entrenchment mechanism for Genco's board. Such a move would potentially prevent shareholders from evaluating the Diana Shipping offer.
Genco's board has repeatedly rejected the takeover attempts, arguing the price undervalues the company. The shareholder vote is scheduled for Genco's annual meeting on June 18.