Potential Board Changes and Management Overhaul

According to undisclosed sources, activist investor Carl Icahn is poised to secure enough shareholder support to place Andrew Teno, an Icahn nominee, to join the board of Illumina Inc (NASDAQ: ILMN).

However, it should be noted that the tally has not yet been finalized, and shareholders still have the opportunity to modify their votes before the commencement of the company’s annual shareholder meeting on Thursday, Reuters reported.

Also Read: Carl Icahn Admits Making A Mistake On Bearish Bet, Said He Should Have Kept His Own Advice.

Carl Icahn accused Illumina directors of demanding extra personal liability insurance before agreeing to close the $8 billion purchase of cancer screening company Grail Inc as regulators were against the deal.

Icahn, who holds a 1.4% stake in Illumina, has nominated three candidates for the board, which could potentially result in the removal of CEO Francis deSouza and Chairman John Thompson from Illumina’s nine-member board.

In March, Carl Icahn clarified that he wanted management change with former CEO Jay Flatley to return and Grail Inc divested.

“They should bring Flatley back as CEO immediately,” Mr. Icahn said in an interview, without specifying whether he has contacted the former CEO about the idea. “He obviously knows the company and did a good job with it.”

Price Action: ILMN shares are down 0.35% at $211.90 premarket on the last check Thursday.

Photo by Insider Monkey via Flickr Creative Commons

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This article Carl Icahn’s Power Play at Illumina: Potential Board Changes and Management Overhaul originally appeared on Benzinga.com


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