if BDI improve it will be 6 in weeks
Pundits point to Genco/Baltic merger
Wall Street is rife with rumours that the dry bulk sector may see further consolidation in the months ahead by way of a merger between Genco Shipping & Trading and its US-listed compatriot.
Many believe firms like Apollo have been accumulating shares in anticipation of a merger betwen Genco and Baltic Trading, which are led by chairman Peter Georgiopoulos.
Reputable market sources claim the New York-based bulker operator has accelerated the pace of a campaign to explore the possibility of a tie-up with Baltic after enlisting a third party to lead the investigation.
Many believe Genco recruited Houlihan Lokey, which may not come as a surprise since the firm boasts a prominent mergers-and-acquisitions unit and has been growing increasingly active in shipping in recent years.
When contacted by TradeWinds, a spokesman for the owner declined to comment in response to questions about the possibility of a merger and said he could neither confirm nor deny reports that it recruited an advisor.
A refinancing of DryShips’ $700m in convertible notes due on 1 December will come to pass despite the failure of a recent bond issue, chief executive George Economou vows.
“Yes, certainly it will get done,” Economou told TradeWinds.
“We have various options. I don’t want to discuss them. But we have to look at various options to bridge this gap.”
Economou confirmed that one option under consideration is an injection of his personal funds but he made clear that no one was forcing his hand.
“I would do it in any case to support the company but not as a requirement from anybody,” he said.