Lawyers Investigate Potential Breaches in Genco-Baltic Merger

Lawyers Investigate Potential Breaches in Genco-Baltic Merger

The Pennsylvania-based law office of Brodsky & Smith has launced an investigation into potential claims against the Board of Directors of the dry bulk specialist Baltic Trading Limited for possible breaches of fiduciary duty and other violations of state law in connection with the sale of the company to Genco Shipping & Trading Limited.

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, says Brodsky & Smith.

For example, Baltic previously traded at USD 6.86 per share May 27, 2014 and an analyst has set a USD 4.00 per share price target for Baltic.

Genco and Baltic signed the stock-for-stock merger agreement on April 8, creating a dry bulk shipping company with a fleet of 70 vessels and an aggregate carrying capacity of approximately 5,159,000 dwt.

Following the customary closing conditions and approvals, the transaction is expected to close in the third quarter of 2015.

 

Share this article

Follow World Maritime News

In Depth>

Events>

<< Oct 2019 >>
MTWTFSS
30 1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31 1 2 3

CruiseConnect Global 2019

Attend CrewConnect Global and stay on for the CruiseConnect Summit to take part in an industry-wide conversation focused…

read more >

CEDA Dredging Days 2019

CEDA Dredging Days programme will follow its successful format of contributed peer-reviewed…

read more >

Offshore Wind Europe 2019

#OWEU19 is a meeting place for governments, developers and suppliers to grow the confidence in wind power. Perfect to grow your business by securing new customers, meeting officials and industry heads.

read more >

6th Mozambique Gas Summit & Exhibit

This year’s edition will have a revamped programme for attendees.

read more >