Genco Shipping & Trading Limited (NYSE: GNK) announced that proxy advisory firm Institutional Shareholder Services has recommended shareholders vote for all of the company's director nominees on the white proxy card.

ISS also recommended that shareholders vote to withhold support for Diana Shipping Inc.'s nominees and vote against Diana's shareholder proposals. This makes ISS the third independent proxy advisory firm to support Genco's board slate, joining Glass Lewis and Egan-Jones.

The recommendation comes amid Diana Shipping's unsolicited tender offer of $24.80 per share for Genco. In its June 5 report, ISS stated that Diana's most recent offer "does not appear to be a reasonable starting point for engagement" and that Diana "has not presented a compelling case for change."

ISS noted in its analysis that Genco's board "is responding appropriately" and has "established a clear path forward" with objective criteria for engagement that "do not appear unreasonable given the current market environment."

The proxy advisory firm also questioned Diana's credibility, stating it was "difficult to understand why a hostile bidder would decrease its position in the midst of a takeover attempt, citing overvaluation of the target's stock, only to return less than two weeks later with an offer at a higher price point."

Genco operates a fleet of 43 drybulk vessels with an aggregate capacity of approximately 4,935,000 deadweight tons and an average age of 12.6 years. The company transports commodities including iron ore, coal, grain, steel products, and bauxite globally.

The company's board has urged shareholders to reject Diana's tender offer by not tendering their shares and to vote for Genco's six director nominees at the upcoming annual meeting.