Carl Icahn Plans to Oust Illumina Directors
Activist Investor’s Bold Move
Activist investor Carl Icahn has announced his intention to remove directors at Illumina, the gene-sequencing company, setting the stage for a second board challenge. This move comes after shareholders previously elected one of his director candidates, marking a significant development.
New Board Challenge
Carl Icahn disclosed his plans in a letter to fellow shareholders, less than 24 hours after Illumina revealed its decision to divest blood test maker Grail. The billionaire investor has been critical of Illumina’s $7 billion Grail acquisition, and he attributes a 75% drop in Illumina’s share price to this acquisition, resulting in a loss of $55 billion in value for shareholders. The stock was up more than 2% at $130.39 on Monday.
Critical Acquisitions
Previously, Icahn sued the board, accusing directors of breaching their fiduciary duties. He praised the company’s decision to divest Grail but emphasized that the job at Illumina has not been fully completed. His primary goal is to remove the legacy conflicted directors, following the removal of former CEO Francis deSouza and the divestment of Grail.
Reshaping Leadership
While Icahn has not revealed details about his plans, it is noted that only four directors – Scott Ullem, Teno, Stephen MacMillan, and the company’s new CEO Jacob Thaysen – played no role in recent decisions, suggesting a potential target for as many as seven directors, including a Nobel Prize winner and a former U.S. Food and Drug Administration Commissioner, for removal.
Investor Shift
The investor base at Illumina has been changing, with more hedge funds increasing their holdings. Activist ValueAct, for example, listed Illumina as a new stake in its most recent 13-F regulatory filing. A greater concentration of hedge fund investors is often seen as a positive sign for a potential proxy contest, indicating a potential shift in the company’s investor landscape.
Enhanced Decision-Making
Carl Icahn’s latest move in his ongoing battle with Illumina demonstrates his unwavering dedication to reshaping the company’s leadership. The developments within the company’s board and investor base suggest a significant shift in the company’s future direction, with potential implications for the broader industry.
