* Sees vessel to be delivered by end-Jan 2010

* Shares rise 1 pct

Dec 28 - Greek dry bulk carrier Diana Shipping Inc (DSX.N) said it agreed to buy a Panamax dry bulk carrier for $35.1 million from a third party, as part of its two-year investment plan.

The 2004-built vessel is expected to be delivered by the sellers by the end of January 2010, Diana said in a statement.

In October, Diana said it would start buying vessels at the end of the year with a focus on Capesize and smaller Panamax vessels. [ID:nL8295842] Diana charters a majority of its vessels in the long-term charter market, thereby eliminating revenue volatility, as opposed to short-term spot market, where rates fluctuate on a daily basis.

Shares of the company were up 1 percent at $14.75 Monday morning on the New York Stock Exchange. (Reporting by Thyagaraju Adinarayan in Bangalore; Editing by Gopakumar Warrier)

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